70,000 shares of stock outstanding with a market 4. XMart is currently an all equity firm that has 70,000 shares of stock outstandi price of $42 a share. The current cost of equity is 12% and the tax rate is 34%. considering adding $1 million of debt with a coupon rate of 8% to her capitals will be sold at par value. What is the levered value of the equity? A. $2.94 million B. $2.70 million C. $3.28 million D. $1.94 million E. $2.28 million