MacKinnon Co. currently has EBIT of $34,000 and is all equity financed. EBIT is expected to stay at this level indefinitely. The firm pays corporate taxes equal to 24% of taxable income. The cost of equity for this firm is 14%. The market value of the firm is 184,571.43.

Suppose the firm has a value of $184,571.43 when it is all equity financed. Now assume the firm issues $75,000 of debt paying interest of 9% per year and uses the proceeds to retire equity. The debt is expected to be permanent. So the value of the firm would be 202,571.43 and the value of the equity after the debt issue would be 127,571.43.

Suppose that with the $75,000 of debt and no costs to financial distress the firm has a value of $202,571.43. Suppose, in addition:

1) The debt issue raises the possibility of bankruptcy.

2) The firm has a 19% chance of going bankrupt after 3 years.

3) If it goes bankrupt, it will incur bankruptcy costs of 60,000.

4) The discount rate is 14%.

What is the value of the firm? Enter your answer rounded to two decimal places.