A firm reports debt with book value of $500,000 and market value of $550,000. The firm's equity trades at a market value of $650,000, but its reported (book) value is $600,000. The tax rate is 21 percent, and the firm's cost of capital is 14.50 percent. What is the market value of this firm based on MM Proposition ! without taxes? $1,100,000 $765,500 $1,150,000 $1,200,000