Using the Gordon Growth model calculate the value of the equity of an asset having the following characteristics

• Net cash flow to equity (year zero) = $450,000
• Market value of debt = $1,000,000
• Cost of equity = 24%
• Cost of debt = 9%
• WACC = 16.7%
• Expected long-term stabilized revenue growth rate = 7%
• Expected long-term stabilized equity cash flow growth rate = 4%
• Expected long-term stabilized units sold growth = 9%
• Expected long-term stabilized TEV cash flow growth rate = 5%

	A.	$4,038,462
	B.	$3,340,000
	C.	$2,340,000
	D.	$3,832,353
	E.	$3,685,039