The ABC Co. has expected EBIT of $600 in perpetuity, and unlevered cost of capital of 12%. The firm will raise debt with market value of $1,000 and interest of 8%. The firm will repurchase it equity using the proceeds from newly issued debt. The tax rate is 35% Please, assume the economy with no bankruptcy and no financial distress. What is the value of the firm after recapitalization?

		$3,920
		$3,500
		$3,600
		$3,800
		$3,440