Carnival Company is currently an all equity firm that has 1,700,000 shares of stock outstanding with a market price of $51 a share. The current cost of equity is 10.2 percent and the tax rate is 25 percent. The firm is considering adding $18 million of debt with a coupon rate of 6.4 percent to its capital structure. The debt will be sold at par value. What is the levered value of the equity?

$69,700,000

$78,400,000

$80,000,000

$75,150,000

$73,200,000