Bassett Fruit Farm expects its EBIT to be $409,000 a year forever. Currently, the firm has no debt. The cost of equity is 14.1 percent and the tax rate is 35 percent. The company is in the process of issuing $1.9 million worth of bonds at par that carry an annual coupon of 5.7 percent. What is the unlevered value of the firm?

Multiple Choice

• $2,094,957

• $1,696,915

• $1,885,461

• $2,550,461

• $2,322,709