The Winter Wear Company has expected earnings before interest and taxes (EBIT) of $2,100 per year. Under its current all-equity capital structure, it has a cost of equity (required return on equity) of 14%. The firm is considering switching to a capital structure that contains some leverage. The firm would do so by issuing $2,800 of debt at an interest rate of 7%. The debt would be used to repurchase outstanding equity. The firm's tax rate is 34% and interest is tax deductible. What will the firm's value be after this restructuring? Except for taxes, assume that markets are perfect (no bankruptcy, etc.)

$9,900

$10,852

$11,748

$12,054

$12,700