Gaif's Dance Studio is currently an all equity firm that has 80000 shares or stock outstanding with a market price of $42 a share The current cost of equity s 12% and the tax rate s 34% Ganis considering adding $1 million of debt with a coupon rate of 8% to her capital structure. The debt will be sold at par value What is the levered value of the equity? 52.7 million on 53.3 million $3.7 million $3.4 million $2.4 million