Lucky Day Campgrounds Has Expected Earnings Before Interest and Taxes

Multiple Choice

Lucky Day Campgrounds has expected earnings before interest and taxes of $6,200, an unlevered cost of capital of 12%, and a tax rate of 35%. The company also has $24,000 of debt that carries an
8% coupon. The debt is selling at par value. What is the value of this firm?

A) $32,609
B) $34,811
C) $37,141
D) $39,617
E) $41,983