La Desgmcia is currently an all equity rm that has 400,000 shares of stock out standing with a market price of $30 a share. The current cost of

La Desgracia is currently an all equity firm that has 400,000 shares of stock out- standing with a market price of $30 a share. The current cost of equity is 11.0% and the tax rate is 32%. The firm is considering adding $3.0 million of debt with a coupon rate of 8.0% to its capital structure. The debt will be sold at par value. What is the levered value of the firm’s equity?

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La Desgmcia is currently an all equity firm that has 400,000 shares of stock out—standing with a market price of $30 a share. The current cost of equity is 11.0%and the tax rate is 32%. The firm is considering adding $3.0 million of debt witha coupon rate of 8.0% to its capital structure. The debt will be sold at par value.What is the levered value of the firm ’3 equity? a. $9.960 millionb. 311.040 millionc. $12960 milliond. $8.050 millione. $9.000 million