Kline Construction is an all-equity firm that has projected perpetual EBIT of $380,000. The current cost of equity is 13.8 percent and the tax rate is 25 percent. The company is in the process of issuing $996,000 worth of perpetual bonds with an annual coupon rate of 5.4 percent at par. What is the value of the levered firm?

$1,511,739

$1,967,247

$1,866,345

$2,065,217

$2,314,217