A firm has a debt-equity ratio of .35. The required return on the companys unlevered equity is 12.1 percent and the pretax cost of the firms debt is 6.3 percent. Sales revenue for the company is expected to remain stable indefinitely at last years level of $18.6 million. Variable costs amount to 50 percent of sales. The tax rate is 21 percent and the company distributes all its earnings as dividends at the end of each year.

Use the flow-to-equity method to calculate the value of the company's equity. Do not round intermediate values and submit your answer rounded to the nearest cent.

Hint: to find the annual interest, you will first need to find the value of the levered firm under the WACC approach.