Use the following information to value a firms assets. Assume the following:

- the market value of the firm's assets is expected to remain constant over time so the firm doesn't grow and can be valued as a level perpetuity,

-the firm has a constant debt-to-assets 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 2 million and the number of bonds is 1 million

- The constant annual dividend per share is $5

- The bonds have an annual fixed coupon payment of $4 10-year government bonds have a yield of 3% and the market risk premium is 5%

- The beta of levered equity is 1.6 The beta of the bonds is 1.3 Which of the following is the market value of the levered firms assets?

a. $112.6 million

b. $93.2 million

c. $102.4 million

d. $140.9 million

e. $133.0 million