Ready To Go is an all-equity firm specializing in hot ready-to-eat meals. Management has estimated the firm's earnings before interest and taxes will be $68,000 annually forever. The present cost of equity is 14. 1 percent. Currently, the firm has no debt but is considering borrowing $450,000 at 8 percent interest. The tax rate is 24 percent. What is the value of the unlevered firm?
a. $366,525
b. $323,017
c. $346,511
d. $314,141
e. $305,200