You are attempting to value a new firm, Firm X. You estimate that it will have EBIT of $5 million per year perpetually. Annual dividends will equal annual net income. You intend to value X using a firm in the same industry. The comparable firm has equity worth $235 million and debt worth $200 million. The tax rate is 40%. The comparable firm rebalances its capital structure so as to maintain a constant leverage ratio. X likewise will maintain a constant leverage ratio, but its ratio will be 65% equity and 35% debt. The competitor's current required return on equity is 12% and its return on debt is 7%. The risk-free rate is 6%. You predict that Firm X will have a 6.5% return on debt. What is the value of firm X?