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