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Railsplitters, Inc. has the following information for its capital structure: Instrument: Amount Issued Current Price YTM Bond A $500 Million 100.82 4.36% Bond B $550

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Railsplitters, Inc. has the following information for its capital structure: Instrument: Amount Issued Current Price YTM Bond A $500 Million 100.82 4.36% Bond B $550 Million 101.36 4.49% Common Stock 42.5 Million Shares $29.60 per share E(R) Market = 8.65% B = 1.27 Expected Dividend = $1.95 Rf = 2.10% Growth Rate = 2.75% Given this information, what is the total market value of the firm? Answer in millions. $2,057 $2,176 $1,937 $2.320

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