T\&T is a zero-growth company. It's tax rate is 40 percent. The firm's earnings before interest and taxes (EBIT) are $100,000 and has 10,000 shares of common stock outstanding selling at a price per share of $60.00. The firm is considering moving to a capital structure that is comprised of 40 percent debt and 60 percent equity, based on market values. What is the new value of the firm after the recapitalization if its investment bankers believe its weighted average cost of capital would be 9.5 percent after the change in capital structure? $813,008 $631,579 $705,882 $1,176,471