Rekall has an EBIT of $250,000 per year forecast in perpetuity. Its cost of equity is 14% and Rekalls tax rate is 30%. Rekall has debt with a value of $500,000. Rekall is in financial distress. Analysts estimate that Rekalls indirect costs of distress are 6% and the direct costs of distress are 20% of its value without distress. What are Rekalls total distress costs?

a. $ 214,000

b. $ 325,000

c. $ 364,000

d. $ 455,000

e. $1,400,000