Compute the enterprise value of a company that has the following information.

- Free cash flow to the firm in forecast year 1 is projected to be $101

- After forecast year 1 cash flows are projected to grow at 3.3% per year forever.

- The cost of equity is 7.8%.

- The cost of debt is 4.1%

- The corporate tax rate is 21%.

You estimate leverage with respect to two comparable firms with the following information.

- Firm A has a share price of $20, 91 million shares on issue and $0.6 billion debt.

- Firm B has a share price of $56, 83 million shares on issue and $2 billion debt.

- In estimating leverage, use the average leverage from your analysis of the two comparable firms.

- The company will maintain the same ratio of debt/(debt + equity) in perpetuity.

What is the enterprise value of the company?

A: between $2400 and $2600

B: between $2600 and $2800

C: between $2800 and $3000

D: between $3000 and $3200

E: between $3200 and $3400

F: answer not in this range.