AAA is an unlevered firm with a cost of capital of 15%. The company is considering adding debt to its capital structure to reduce equity. Specifically, the company is evaluating the consequences of adding $3 million in perpetual debt at a pre-tax cost of 6.2%. The firm expects to generate EBIT of $8 million every year into perpetuity. Assume interest expense is tax deductible. The firm pays a tax rate of 22%. Ignore financial distress costs.

What is the firm value of AAA in its current unlevered form?