A company expects an EBIT of $94,500 every year forever. The company currently has no debt and its cost of equity is 11%. The corporate tax rate is 25%. Suppose the company can borrow at 6.5% and use the debt proceeds to repurchase shares. What will the value of the firm be if the company recapitalizes and takes on debt equal to 60% of its unlevered value?

		$740,965.91
		$724,857.95
		$708,750.00
		$692,642.05
		$660,199.58