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Bassett Fruit Farm expects its EBIT to be $361,000 a year forever. Currently, the firm has no debt. The cost of equity is 12.9 percent

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Bassett Fruit Farm expects its EBIT to be $361,000 a year forever. Currently, the firm has no debt. The cost of equity is 12.9 percent and the tax rate is 40 percent. The company is in the process of issuing $2.9 million worth of bonds at par that carry an annual coupon of 6.5 percent. What is the unlevered value of the firm? Multiple Choice $2,352,351 $1,511,163 $2,839,070

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