The Wallace Corporation is a zero growth firm with an expected EBIT of $200,000 on a permanent basis, and corporate tax rate of 40 percent.Wallace uses no debt, and the cost of equity to anunlevered firm in the same risk class is 15.0 percent.The firm has 10,000 shares outstanding.

What is the value of the firm?

$800,000

$1,000,000

$1,2000,00

$1,500,000

$1,800,000