QUESTION $9$

Altec Audio is currently an all equity firm that has $510,000$ shares of stock outstanding with a market price of $$53\mathrm{.}60$ a share. The current cost of equity is $10\mathrm{.}5$ percent and the tax rate is $25$ percent. The firm is considering adding $$8\mathrm{.}40$ 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?

$$21,261,000$

$$21,186,000$

$$21,111,000$

$$21,036,000$

$$20,961,000$