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.

Use the following information to value a firm's 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 800,000 and the number of bonds is 400,000 The constant annual dividend per share is $3.5 The bonds have an annual fixed coupon payment of $10 10-year government bonds have a yield of 1.2% and the market risk premium is 4% The beta of levered equity is 1.3 The beta of the bonds is 1.5 Which of the following is the market value of the levered firm's assets? a. $55.2 million Ob. $73.4 million c. $61.3 million d. $86.2 million e. $99.3 million