A firm just had its first debt issue of $1M worth of perpetual bonds with a yield to maturity of 7.5%. thr total market value of the firm after the issue is $6M. assuming the corporate tax view of capital structure, what was the market value of the firm before the issue if the firms tax rate is 40%?

A. 5.4m

5.8m

5.2m

5.6m

6m