A firm has an operating profit of $300,000, interest of $35,000 and a tax rate of 40 percent.The firm has an after-tax cost of debt of 5 percent and a cost of equity of 15 percent. The firm's target capital structure is set at a mix of 40 percent debt and 60 percent equity. Assuming this as the optimum capital structure, the value of the firm is closest to.....

Group of answer choices

$1,764,706

$1,636,363

$2,200,000

$6,000,000

None of the above answers is correct