Bluegrass Mint Company has a debt-equity ratio of 0.32. The required return on the company's unlevered equity is 15% and the pretax cost of the firm's debt is 5.1%. Sales revenue for the company is expected to remain stable indefinitely at last year's level of $22,902,872.5. Variable costs amount to 61% of sales. The tax rate is 27% and the company distributes all its earnings as dividends at the end of each year.

What would be the value of debt?

HINT: Use the WACC to compute the value of the company and then determine the amount of debt