s a financial analyst, you are given the following information on a firm: the firm has a Debt-Equity ratio of 0.35. R0 for this firm equals to 13.1%. The pre-tax cost of firm’s debt is 6.4%. Earnings before tax (and interest) is $7,720,000 per year and remains stable indefinitely. This firm faces a tax rate of 21% and distributes all earnings as dividends at the end of each year. Calculate the value of the unlevered firm.