Dabney Electronics currently has no debt; and it has 2 million stock shares outstanding, $5million NOPAT (a proxy for the free cash flow), zero growth, and 40% tax rate. The choices of debt/capital ratios (w_d) are 0%, 30%, and 60%. w_s is the equity/capital ratio. r_d is the pre-tax interest rate. r_s is the cost of equity. At 60% debt ratio, what are the firm value (V) and stock price (P)?

wd	ws	rd	beta	rs	WACC	V ($mill)	P ($)
0%	100%	4%	0.80	7.00%	7.00%	71.43	35.71
30%	70%	5%	1.01	8.03%	6.52%	76.69	38.34
60%	40%	10%	1.52	10.60%	7.84%	?	?

Group of answer choices

V=72.35; P=36.21

V=63.78; P=31.89

V=76.69; P=38.34

V=71.43; P=35.71