Two firms with identical assets, Levered and Unlevered, generate identical cash flows. Unlevered is an all-equity firm, with 300,000 shares outstanding that trade for a price of $13 per share. Levered has 1.2 million shares outstanding and $1.3 million dollars in debt at an interest rate of 5%. According to Modigliani-Miller Proposition 1, the stock price for Levered is closest to:

Select one:

a. $13.00

b. $12.00

c. $6.00

d. $2.00