Question 4 rrect Answer ou Answered Bassett Fruit Farm expects its EBIT to be $381,000 a year forever. Currently, the firm has no debt. The cost of equity is 13.4 percent and the tax rate is 40 percent. The company is in the process of issuing $2.6 million worth of bonds at par that carry an annual coupon of 6.4 percent. What is the value of the firm with leverage? A. $2,320,746 B. $1,895,522 C. $2,745,970 D. $1,535,373 E. $1,705,970