Bavarian Brew an unlevered firm has an expected EBIT of $500,000. The required return on assets for the firms assets is 10%. The company has 250,000 shares outstanding. The company is considering raising $1 million in debt with a required return of 6% and would use the proceeds to repurchase outstanding stock. What is the value of Bavarian Brew before restructuring.  Assume no corporate taxes?

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