A firm has an unlevered cost of equity of rho $=11\mathrm{.}25\%.$ The cost of debt is $5\%.$ The tax rate is $T=20\%.$ EBIT $=5,625,000($constant

and perpetual$).$ There are $1M$ shares outstanding. The firm has $$20,000,000$ in debt. The firm has bankruptcy and financial distress

costs equal to $$5,500,000.$ The value of the levered firm is

a$.$ $$49,500,000$

b$.$ $$44,000,000$

C$.$ $$41,250,000$

d$.$ $$38,500,000$

e$.$ Not enough information