Corn Cobs Company $($CCC$)$ is a mature company that is expecting a $4\%$ constant

growth to their free cash flows. The current market value of the firm is $$6$ Million. Its

market value of debt is $$1\mathrm{.}5$ million, and its cost of debt is $5\%.$ CCC$$s current cost of

equity is $10\%.$ Risk free rate $=3\%,$ and the market risk premium $=7\%.$ If the firm can increase its debt to capital ratio to $28\%$ without increasing its cost of debt, what would its new firm value be$?$ The tax rate of the firm is $25\%.$

Hint $1$: Find the FCF next year. Hint $2$: increasing debt level will increase riskiness on equity capital.