Question 7 (7 points) The Spartan Co is an unlevered firm which has earnings before interest and taxes of $1,100 and a cost of capital of 10 percent. A levered firm with the same operations and assets has both a book value and a face value of debt of $2,800 with a 7 percent cost of debt. The applicable tax rate is 34 percent. What is the value of the levered firm? $7.260 $8,212 O $11,000 $2,338 $4.900