Kline Construction is an all-equity firm that has projected a perpetual EBIT of $288,000. The current cost of equity is 11.5 percent and the tax rate is 21 percent. The company is in the process of issuing $904,000 worth of perpetual bonds with an annual coupon rate of 5.7 percent at par. What is the value of the levered firm?

$1,836,522

$1,898,376

$2,168,275

$1,978,435

$1,487,583