Our firm survives for the next $3$ years and then it is dissolved $($no residual value$).$ Each of these $3$ years, it earns before interest and taxes $$420,000($i$.$e$.,$ these are the only payoffs that shareholders will ever receive$)$ and has already depreciated its fixed assets. It draws $25\%$ of its financing from $3-$year bonds with face value $$1,000($each$)$ that pay an annual coupon of $$50$ and sell at par.

The firm has a beta of $1\mathrm{.}2$ and faces a corporate tax rate of $20\%.$ The risk free rate is $4\%$ and the expected market return is $14\%.$

What is the value of the firm?

a$.$

$$991,684$

b$.$

$$2,584,615$

c$.$

$$4,200,000$

d$.$

$$789,992$

e$.$

$$747,259$

f$.$

$$3,169,811$

g$.$

$$934,074$

h$.$

$$793,347$

i$.$

$$3,360,000$

j$.$

$$987,490$

k$.$

$$3,239,769$

l$.$

$$835,582$

m$.$

$$2,535,849$

n$.$

$$1,044,478$