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From the following data, calculate the total market value of the firm (assume these value are constant forever). Earnings before interest = $0.1 million, D

From the following data, calculate the total market value of the firm (assume these value are constant forever). Earnings before interest = $0.1 million, D = $0.2 million, interest on debt = 10% p.a., cost of equity capital = 20%, the dividend payout ratio = 0.5, and assume no taxes.

A. $600,000

B. $500,000

C. $473,684

D. $400,000

E. $200,000

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