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Firm F generates permanent EBIT of 1Mns, leverage of 1, rS = 10%, and rB = 3%. The corporate tax rate is 30%. What is

Firm F generates permanent EBIT of 1Mns, leverage of 1, rS = 10%, and rB = 3%. The corporate tax rate is 30%. What is the value of firm F (debt + equity)?

a) 11.57 Mns

b) 12.57 Mns

c) 13.57 Mns

d) 14.57 Mns

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