Ready to Go Is an All-Equity Firm Specializing in Hot

Ready To Go is an all-equity firm specializing in hot ready-to-eat meals.Management has estimated the firm's earnings before interest and taxes will be $175,000 annually forever.The present cost of equity is 15.1 percent.Currently,the firm has no debt but is considering borrowing $750,000 at 9 percent interest.The tax rate is 34 percent.What is the value of the unlevered firm?

A) $623,017
B) $646,511
C) $704,141
D) $764,901
E) $855,200