Kline Construction is an all-equity firm that has projected perpetual EBIT of $352,000. The current cost of equity is 13.1 percent and the tax rate is 35 percent. The company is in the process of issuing $968,000 worth of perpetual bonds with an annual coupon rate of 6.1 percent at par. What is the value of the levered firm?

Multiple Choice $1,746,565 $1,571,908 $1,940,628 $2,085,365 $2,012,996