A firm has perpetual capital expenditures of $50, depreciation charges of $100, and negligible changes in working capital. Additionally, it has a perpetual interest expense of $100 and a tax expense of $270, reflecting the 30% tax rate. The firm's book value of debt and assets are $1,250 and $5,000 respectively. The firm has an asset beta of 1.2 and a beta of debt of 0.4. The risk-free rate is 5% and the Market Risk Premium is 7.5%.

1- Calculate the value of the firm using the WACC method. When calculating the cost of debt, assume that the risk is all systematic.