QUESTION 4 Clarkson Corporation is currently an all equity firm that has 450,000 shares of stock outstanding with a market price of $63.40 a share. The current cost of equity is 10.5 percent and the tax rate is 25 percent. The firm is considering adding $6.3 million of debt with a coupon rate of 6 percent to its capital structure. The debt will be sold at par value. What is the levered value of the equity? $18,855,000 $19,305,000 $18,496,000 $19,526,000 $18,637,000