A firm is currently an all equity firm that has 395,000 shares of stock outstanding with a market price of $19.50 a share. The current cost of equity is 15.5% and the tax rate is 24%. The firm is considering adding $925,000 of debt with a coupon rate of 8% to it's capital structure.  The debt will be sold at par value. What is the leveled value of the equity?   A) 7,349,475 B) 8 716,950 C) 6,999,500 D) 7,528,275 E) 7,132,050

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