Bassett Fruit Farm expects its EBIT to be $381,000 a year forever. Currently, the firm has no debt. The cost of equity is 13.4 percent and the tax rate is 40 percent. The company is in the process of issuing $2.6 million worth of bonds at par that carry an annual coupon of 6.4 percent. What is the unlevered value of the firm?

Multiple Choice

$2,320,746

$2,745,970

$1,705,970

$1,535,373

$1,895,522