Indiana Harbor Co. is an all equity firm that has Earnings Before Tax of $350,000 that are forecast to continue at that level forever. The current cost of equity is 11.7% and the tax rate is 30%. Indiana is planning to issue $950,000 worth of debt with an interest rate of 7.5% and expects that debt level and interest rate to continue forever. Upon issuance of this new debt, what will be the value of Indiana Harbor?

$2,069,098

$2,205,167

$3,276,453

$2,379,017