Kline Construction is an all-equity firm that has projected perpetual EBIT of $308,000. The current cost of equity is 12 percent and the tax rate is 34 percent. The company is in the process of issuing $924,000 worth of perpetual bonds with an annual coupon rate of 6.2 percent at par. What is the value of the levered firm?

Multiple Choice

• $1,882,222

• $1,524,600

• $1,945,191

• $2,008,160

• $1,694,000