Use the following information to value a firms assets;

Assume the following:

The market value of the firms assets is expected to remain constant over time so the firm doesnt grow and can be value as a level perpetuity

- The firm has a constant debt to asset ratio

- the bonds are priced at par, and

- the stock's expected capital returns are zero

Relevant data:

- The number of shares on issue is 1 million and the number of bonds is 800,000

- The constant annual dividend per share is $3

- The bonds have an annual fixed coupon payment of $2.50

- 10-year government bonds have a yield of 2% and the market risk premium is 5%

- The beta of levered equity is 1.2

- The beta of the bonds is 0.9

Which of the following is the market value of the levered firms assets?

a) 68.3 million

b) 21.2 million

c) 42.9 million

d) 54.7 million

e) 70.1 million