Calculate the Market Value of a Firm with Total Assets

Multiple Choice

Calculate the market value of a firm with total assets of $60 million and a net worth of $35 million. The firm's cost of equity is 15%, and the cost of perpetual debt is 8%. The firm has a perpetual net operating income (EBIT) of $4.5 million and a marginal tax rate of 35%.

A) $41.67 million
B) $30.00 million
C) $35.83 million
D) $30.83 million