Answer:
The answer is $1,409,600
Explanation:
Value of firm also known as enterprise value is the value of a company at a particular point in time.
The firm value can be calculated by multiplying the total number of shares outstanding by the current share price of the firm.
In this question, the price of the borrowed fund is:
$74,000/2,100shares
=$35.24
Therefore, total value of the firm is
40,000 outstanding shares x $35.24 = $1,409,600
Please note that $1,409,600 has been rounded up.
