A Inc. is an all equity firm. At the end of the current year, the CFO expects EBIT to be $5M and the same earnings are expected annually in perpetuity. The company is not growing so CAPEX and investments in net working capital are zero. The cost of equity for A Inc. is 14%. Marvel's prime competitor is a company called Hydra Treats Inc. Hydra Treats is identical to Hydra in every respect except that Hydra Treats has $2.5M of long term debt outstanding. What is the value of Hydra Treats' equity? The corporate tax rate is 30%.