Use this info for 5 questions. DEI, Inc. (DEI), a leader in radar detection systems (RDSs) is looking at setting up a manufacturing plant overseas to produce a new line of RDSs. DEI will use the following to fund the project. (1) 2,500 5.8% bonds with 25 years to maturity, selling for 103% of par, and makes semiannual payments. (2) 3,900 preferred stock outstanding, selling for $87 per share, and paying $6.2 dividend annually. (3) 46,900 shares outstanding, selling for $95 per share; the beta is 1.77. In addition, DEI uses market risk premium of 6.4% and the T-bill rate of 2.7%. The tax rate is 21%.

What is the total value of the firm's capital structure?

a. $7,369,800

b. $7,651,700

c. $7,932,800

d. $8,487,100

e. $8,214,700