You are considering two identical firms, one levered and the other unlevered. Both firms have expected EBIT of $21000. The value of the unlevered firm (VU) is $160000. The corporate tax rate is 30%. The cost of debt is 9%, and the ratio of debt to equity is 1 for the levered firm. Use Modigliani and Miller's (1963) propositions in a world without bankruptcy, what is the value of the levered firm?

Select one:

a. $166300

b. $230000

c. $188235

d. $209235