The following information has been presented to you about the Gibson Corporation.
Total assets $3,000 million
Operating Income (EBIT) $800 million
Interest expense $0 million
Net income $480 million
Tax rate 40%
Debt ratio 0%
WACC 10%
M/B ratio 1.00
Share price $32.00
EPS=DPS $3.20
The company has no growth opportunities (g=0), so the company pays out all of its earnings as dividends (EPS=DPS). The consultant believes that if the company moves to a capital structure financed with 20% debt and 80% equity (based on market values) that the cost of equity will increase to 11% and that the pre-tax cost of debt will be 10%. If the company makes this change, what would be the total market value (in millions) of the firm?
Please provide a detailed answer.