NewKirk Inc.., is an unlevered firm with expected annual earnings before taxes of $21 million in perpetuity. The current required return on the firm's equity is 16 percent, and the firm distributes all of its earnings as dividends at the end of each year. The company has 1.3 million shares of common stock outstanding and is subject to a corporate tax rate of 35 percent. The firm is planning a recapitalization under which it will issue $30 million of perpetual 9 percent debt and use the proceeds to buy back shares. Use the APV method to calculate the company value after the recapitalization plan is announced. Please show the work.

A. $12,450,000

B. $45,312,600

C. $95,812,500

D. $21,650,000