5. Bullwinkles Enterprises is a no-growth company. The annual cash flows to debt are $40,000 the cost of debt is 5 percent. The annual cash flows to equity are $36,000 and the cost of equity is 8 percent. According to the M&M no tax case, what is the total value of the firm?

a. $800,000

b. $950,000

c. $1,100,000

d. $1,250,000