Lemon, Inc. is an unlevered firm which has a cost of capital of 14% and EBIT of $150,000 per year in perpetuity. A levered firm with the same operations, assets and business risk has both a book value and a market value of debt of $700,000 with a 7% annual coupon. The corporate tax rate is 21%. Investors do not have to pay personal taxes on dividends and ordinary income. The present value of the bankruptcy costs is $52,000. What is the value of the levered firm (rounded to the nearest dollar figure)? Multiple Choice $147,000 $941,429 $846.429