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Cargill, Inc. is currently an all equity firm that has 180,000 shares of stock outstanding with a market price of $50.50 a share. The current

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Cargill, Inc. is currently an all equity firm that has 180,000 shares of stock outstanding with a market price of $50.50 a share. The current cost of equity is 12.6 percent and the tax rate is 25 percent. The firm is considering adding $3.76 million of debt with a coupon rate of 5.5 percent to its capital structure. The debt will be sold at par value. What eis the levered value of the equity? $6,540,000 $6,827,800 $7,142,900 $7,381,470 $6,270,000

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