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You are a shareholder of Babies R Us Co. The company is levered with debt outstanding of $50,000. The companys EBIT is $100,000. The corporate

You are a shareholder of Babies R Us Co. The company is levered with debt outstanding of $50,000. The companys EBIT is $100,000. The corporate tax rate is 40%. The weighted average cost of being unlevered is 12 percent. What is the value of being unlevered? Select one: a. $640,000 b. $620,000 c. $540,000 d. $500,000.

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