Company A is currently an all equity firm that has 40,000 shares of stock outstanding with a market price of $84 a share. The current cost of equity is 12% and the tax rate is 34%. Company A will add $2 million of debt with a coupon rate of 5% to the capital structure. The debt will be sold at par value. Based on MM Prop. 1 (w/ tax), the levered value of Company As equity will be: