$2,762.24
Explanation:
The computation of the market value as follows:
But before that WACC is
WACC is
= Weight of Equity × Cost of Equity + Weight of Debt × Cost of Debt × (1 -Tax Rate)
= 60% × 16.5% + 40% × 11%
= 14.30%
Now the Market Value is
= (EBIT) × (1 - Tax rate) ÷ WACC
= $500 × (1 - 21%) ÷ 14.30%
= $2,762.24