Stark Industries is an all-equity firm that has projected perpetual EBIT of $340,000. The current cost of equity is 12.8 percent and the tax rate is 21 percent. The company is in the process of issuing $956,000 worth of perpetual bonds with an annual coupon rate of 6.4 percent at par. What is the value of the levered firm?

Multiple Choice

$1,434,375

$2,299,198

$2,098,438

$1,873,492

$1,770,833