$($CHAPTER $16)$

$($For this problem, assume that all Miller$-$Modigliani assumptions hold.$)$

Apples & Oranges is currently an all$-$equity firm. Its management expects its Earnings Before Interest and Taxes to equal $$310,000$ every year in the future. Its cost of equity is $10\%.$ The firm faces a $40\%$ tax rate for all of its taxable income each year.

Apples & Oranges is contemplating taking a $$230,000$ loan at $4\mathrm{.}50\%$ annual interest rate.

The values in the table below are related to the firm's valuation. Fill it out! Round all dollar values to WHOLE dollar, and do NOT use the $"$$$"$ signs. $($You can type with or without the commas.$)$

$\backslash$table$[[,$If the firm remains all$-$equity,If the firm takes the $$230,000$ loan$],[$Firm$\text{'}$s total value,$$,$$