CT Stores Has Debt with a Book Value of $325,000

Multiple Choice

CT Stores has debt with a book value of $325,000 and a market value of $319,000.The firm's equity has a book value of $526,000 and a market value of $684,000.The tax rate is 21 percent and the cost of capital is 11.2 percent.What is the market value of this firm based on MM Proposition I without taxes?

A) $923,250
B) $1,003,000
C) $984,300
D) $851,000
E) $769,750