XYZ has a constant perpetual annual debt tax shield of $12,000 and its tax rate is 40%. XYZ's unlevered value is $1.200,000. If XYZ has $200,000 in 5% debt outstanding, what is XYZ's value of equity?

Select one:

a.

$1,240,000

b.

$1,529,300

c.

$1,567,533

d.

$1,606,721

e.

$1,646,889