Graceful Funeral Group expects its earnings before interest and taxes to be $325,000 a year forever. Currently, the firm has no debt. The cost of equity is 19.5 percent and the tax rate is 21 percent. The company is in the process of issuing $3.7 million of bonds at par that carry an annual coupon rate of 6.5 percent. What is the unlevered value of the firm?

A) $1,455,524

B) $1,416,066

C) $1,191,500

D) $1,053,420

E) $1,316,667