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A firm has perpetual bond worth $1,000 in total, with yield-to-maturity (YTM) of 4% a year. The unlevered firm value is $2000. Tax rate =

A firm has perpetual bond worth $1,000 in total, with yield-to-maturity (YTM) of 4% a year. The unlevered firm value is $2000. Tax rate = 20%; Unlevered cost of capital = 10%. What is the total dollar value of levered equity? (5 points) a. 1000 b. 1200 c. 1400 d. 2000

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