You were hired as a consultant to value Apex Company, whose target capital structure is 50% debt, and 50% common equity. The after-tax cost of debt is 6%, and the cost of equity is 15%. Assume you expect the EBIT for Apex in the current year to be $500 million. Also, assume that the EBIT will grow by 4% per year starting next year. Apex does not have any depreciation, CAPEX, or change in NWC. Assume the tax rate is 40%. What is the present value of the firm?

4,615 million

4,722 million

4,922 million

4,865 million