Gibson, Inc., expects perpetual earnings before interest and taxes of $1.5 million per year. The firms pre-tax cost of debt is 10% per annum, and its annual interest expense is $300,000. Company analysts estimate that the unlevered cost of Gibsons equity is 15%. Gibson is subject to a 40% corporate tax rate.

Note: ignore costs of distress and bankruptcy.

What is the value of this firm?