Bluegrass Mint Company has a debt-equity ratio of .45. The required return on the companys unlevered equity is 12.3 percent and the pretax cost of the firms debt is 6.1 percent. Sales revenue for the company is expected to remain stable indefinitely at last years level of $19,200,000. Variable costs amount to 65 percent of sales. The tax rate is 21 percent and the company distributes all its earnings as dividends at the end of each year.

What is the value of the companys debt? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89)

C-3. Value of debt