Vail Resorts is a full service all-inclusive resort in the mid-west. The firm want to add some leverage to their firm as they are running their business at a 0% debt level. The firm has a projected EBIT of $198,000 and can issue debt at 5.8% per annum. They wish to increase their D/E ratio to 1.08 at the end of the year. Vail estimates their cost of equity to be 14.1% and pays 34% in taxes per year.

what is the firm value after it adds this leverage to the firm?