The M Company has an EBIT of $250,000 that is constant over time and a corporate tax rate of 32%. Company M uses $3,500,000 of debt financing. If M used no debt, its cost of equity would be 9%. According to the Modigliani Miller theory with corporate taxes, the value of M should be

$3,490,311

$2,226,578

$3,279,689

$3,008,889

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