Bassett Fruit Farm expects its EBIT to be $377,000 a year forever. Currently, the firm has no debt. The cost of equity is 13.3 percent and the tax rate is 39 percent. The company is in the process of issuing $2.7 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

A) $1,921,220

B) $1,556,188

C) $2,782,098

D) $1,729,098

E) $2,351,659