Bright Morning Foods Has Expected Earnings Before Interest and Taxes

Multiple Choice

Bright Morning Foods has expected earnings before interest and taxes of $48,600,an unlevered cost of capital of 13.2 percent,and debt with both a book and face value of $25,000.The debt has an 8.5 percent coupon.The tax rate is 34 percent.What is the value of the firm?

A) $245,500
B) $247,600
C) $251,500
D) $264,800
E) $271,300