Leisure Time Sports is an unlevered firm with a profit before tax of $86,000$ in the

recent accounting period. The firm management expects its net profit to grow at a constant

rate of $2\%$ forever. The unlevered cost of capital is $12\%$ and the tax rate is $30\%.$ What is

the value of this firm?

A$.501,666$

B$.602,000$

C$.860,000$