"Alpha Co reported a profit before interest and tax of $$3\mathrm{.}5$ million in its most recent accounts. The company is mainly equity financed, but has a $$2$ million bank borrowing on which it pays $10\%$ per year in interest. The rate of corporate income tax is $25\%.$ Assuming that Alpha Co s P$/$E ratio is $8,$ what is the value of the company s equity?"

$$28\mathrm{.}0$ million

$$26\mathrm{.}0$ million

$$19\mathrm{.}8$ million

$$17\mathrm{.}8$ million