Kline Construction Is an All-Equity Firm That Has Projected Perpetual

Kline Construction is an all-equity firm that has projected perpetual earnings before interest and taxes of $879,000.The current cost of equity is 18.3 percent and the tax rate is 34 percent.The company is in the process of issuing $6.2 million of 8.5 percent annual coupon bonds at par.What is the levered value of the firm?

A) $5,278,164
B) $5,541,085
C) $6,422,225
D) $6,713,185
E) $7,385,695