Cede & Co. can borrow at 11.00 percent. Cede currently has no debt, and the cost of equity is 12.00 percent. The current value of the firm is $664,000. The corporate tax rate is 30 percent. Required: What will the value be if Cede borrows $223,000 and uses the proceeds to repurchase shares?

multiple choice

$355,300

$887,000

$820,100

$730,900

$422,200