Question: Can someone please work me through this problem? Thanks. The Brassy Co. has expected EBIT of $910, debt with a face andmarket value of $2,000

Can someone please work me through this problem? Thanks.

The Brassy Co. has expected EBIT of $910, debt with a face andmarket value of $2,000 paying an 8.5% annual coupon, and anunlevered cost of capital of 12%. If the tax rate is 34%, what is thevalue of the firm?

A)$3,258

B)$3,685

C)$5,685

D)$6,325

E)$7,005

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