Suppose that your firm's current unlevered value, V*, is $800,000, and its marginal corporate tax rate is 35 percent. Also, you model the firm's PV of financial distress as a function of its debt level according to the relation: PV of financial distress = 800,000 ((D/V*)^2). What is the firm's levered value if it issues $200,000 of perpetual debt to buy back stock? (a) $820,000 (b) $869,555 (c) $920,000 (d) $350,000 (e) $720,000

please show all work