An all-equity firm currently has 750,000 shares outstanding and generates operating cash flows (EBIT) of $3,600,000 per year in perpetuity. The unlevered cost of equity is 18%. The firm is considering raising $12,500,000 of debt at an interest rate of 12% and using the proceeds to repurchase shares. There are no taxes or other market imperfections. What would be the value of this firm if it recapitalizes? a) $16,100,000 b) $32,500,000 c) $20,000,000 d) $42,500,000 e) $30,000,000