Ontario Real Estate Company $($ORE Co$.)$ is an all$-$equity firm with $30$ million shares of

common stock outstanding worth $$65$ per share. ORE is planning to purchase a huge

tract of land in Southeastern Ontario for $$200$ million. The land will subsequently be

leased to tenant farmers, increasing ORE$$s annual expected pre$-$tax earnings by $$50$

million in perpetuity. The firm$$s un$-$levered cost of equity is $12\%.$ ORE$$s tax rate is

$40\%.$ The interest rate on ORE$$s bonds is $7\%$ per annum