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 500,000

The constant annual dividend per share is $4

The bonds have an annual fixed coupon payment of $5

10-year government bonds have a yield of 2.5% and the market risk premium is 6%

The beta of levered equity is 0.7

The beta of the bonds is 1.2

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

a. $69.2 million

b. $92.1 million

c. $54.8 million

d. $100.6 million

e. $85.5 million