Company is currently an all equity firm that has 450,000 shares of stock outstanding with a market price of $53.60 a share. The current cost of equity is 10.5 percent and the tax rate is 25 percent. The firm is considering adding $6.70 million of debt with a coupon rate of 6 percent to its capital structure. The debt will be sold at par value. What is the levered value of the equity?

$17,365,000

$17,814,000

$18,280,000

$18,864,000

$19,095,000