An unlevered firm has a cost of capital of 10 percent and earnings before interest and taxes 4. of $200,000. A levered firm with the same operations and assets has face value of debt of $1,600,000 with a coupon rate of 7 percent that sells at par. The applicable tax rate is 35 percent. What is the value of the levered firm? $500,000 A. $1,300,000 B. $1,860,000 C. D. $2,400,000 E. $1,000,000