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 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. $70.1 million

b. $54.7 million

c. $21.2 million

d. $42.9 million

e. $68.3 million