Boutelle Homes has an all-equity value of $648,200, a cost of equity of 11.7 percent, and a tax rate of 35 percent. Assume the firm's capital structure changes to 30 percent debt followed by a lowering of the tax rate to 21 percent. What will be the change in the levered value of the firm due to the reduction in the tax rate?

Multiple Choice

• $16,020

• $17,520

• $29,169

• $27,224

• $17,520