Prokter and Gramble (PG) currently has $25 billion outstanding debt. PG has a cost of equity capital of 7 percent and a cost of debt capital of 4%. PGs tax rate is 20 percent. PG is expected to have EBIT of $9 billion at the end of this year. If PGs cash flows to equity holders grow at 3% in perpetuity, what is the market value for PGs equity?

a. $160million

b. $179million

c. $91million

d. $185million