Eccles Inccorporated Eccles Incorporated, a Zero Growth Firm, Has an Expected EBIT

Multiple Choice

Eccles Inccorporated
Eccles Incorporated, a zero growth firm, has an expected EBIT of $100,000 and a corporate tax rate of 25%.Eccles uses $500,000 of 12.0% debt, and the cost of equity to an unlevered firm in the same risk class is 16.0%.
-Refer to the data for Eccles Incorporated.What is the value of the firm according to MM with corporate taxes?

A) $480,938
B) $534,375
C) $593,750
D) $653,125
E) $718,438