Virginia Ham, Inc. is the company without any debt. The firm generates $358,000 every year in pretax cash flows and the cash flow is taxable. The appropriate discount rate is 9.70 percent. Tax rate is 30 percent.

Management is considering changing its capital structure by selling a $553,000 perpetual bond with an interest rate of 6.12 percent and paying a one-time special dividend of $553,000.

What is the value of the firm's equity after the restructuring is completed?

Assume that all conditions identified by the M&M Propositions with taxes apply.

Round the answer to two decimals.

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