Krisko Industries generated FCFF of $430,000 last year. The firm is expected to grow at a rate of 15% for the next two years. After this high growth period, the firm is expected to grow at a rate of 5% for the forseeable future. The following data applies to Krisko:

• Market value of debt = $3,000,000
• Book value of debt = $2,800,000
• Pre-tax cost of debt = 6%
• Bingo's beta = 1.4
• Risk-free rate - 3%
• Market risk premium = 8%
• Shares outstanding = 500,000
• Current share price = $10
• Book value of equity = $2,000,000
• Tax rate = 40%

Using an FCFF approach, which of the following is closest to the value of the firm's equity?

• About $3,720,000
• About $5,740,000
• About $7,320,000
• About $9,660,000