The M Company has an EBIT of $225,000 that is constant over time and a corporate tax rate of 39%. Company M uses $5,500,000 of debt financing. If M used no debt, its cost of equity would be 14%. According to the Modigliani Miller theory with corporate taxes, the value of M should be

$3,125,357

$3,312,878

$3,594,161

$2,500,286