Trane Corporation has expected earnings before interest and taxes of $830,000, an unlevered cost of capital of 9.4 percent, and a tax rate of 25 percent. The company has $2,900,000 of debt that carries a 5.2 percent coupon. The debt is selling at par value. Assume the firm maintains this debt amount forever. What is the interest tax shield of the firm in a given year? What is the value of the firm?

$33,800 and $6,413,280

$33,800 and $8,678,260

$41,200 and $8,678,260

$41,200 and $7,437,340

$37,700 and $7,347,340