Firm B has net income of 500, CAPEX of 200, depreciation of 150, and working capital of 50. All are expected to grow at 3% and the firm is in stable growth. The firms debt-to-equity (i.e., D/E) ratio is 50%. Its beta is 1, the risk free rate is 5%, and the risk premium is 5.5%. The cost of debt is 6% and the tax rate is 30%. What is the value of its equity using the FCFE approach?

(1) 6395.56

(2) 6160.00

(3) 6631.11

(4) 8882.72