Stevenson's Bakery is currently an all$-$equity firm that is estimated to generate

an EBIT of $$150,000$ per year in perpetuity. The cost of equity is $9\mathrm{.}5\%$ and the

tax rate is $21\%.$ The firm is planning to borrow $$1200000$ by issuing perpetul

debt with a cost of $2\%$ per year, and paying the proceeds as a special dividend

to shareholders. If the firm goes ahead with the planned capital structure

restructuring, what would be the value of the firm? You can assume that the

capital structure restructuring has no impact on the EBIT of the firm.