G&T Corp. (GTC) currently has an ROE of 12%, total assets of $1000 and a dividend payout ratio of 50%. GTC's beta is currently equal to 2 and they have no debt. The marginal corporate income tax rate is equal to 50%. The long-term risk free rate is currently equal to 2% and the expected stock market risk premium is equal to 5%. If GTC increase their debt-to-equity ratio to 1 with an after-tax cost of debt equal to 4% and simultaneously reduce their dividend payout ratio to 40% then GTC's new intrinsic value of equity will be equal to: $600 $500 $700 $800