An unlevered firm has expected annual earnings before taxes of $35 million in perpetuity. The current required return on the firm's equity is 20 percent, and the firm distributes all of its earnings as dividends at the end of each year. The company has 10 million shares of common stock outstanding and is subject to a corporate tax rate of 35 percent. The firm is planning a capitalization under which it will issue $40 million of perpetual 9 percent debt and use the proceeds to buy back shares. Calculate the value of the company before the capitalization plan is announced