Async Inc. and Sync Corp. both have the same EBIT of $3 million and tax rate of 30%. Async is all-equity financed with a cost of capital of 12%, whereas Sync has debt of $7.5 million. What is Sync's firm value using the M&M Proposition?

Select one:

a.$15,250,000

b.$17,500,000

c.$19,750,000

d.$25,000,000

e.$27,250,000