Assume an unlevered firm with a value of $100,000,000 and a cost of equity of.10. The corporate rate is ____________.35. There are zero investor taxes.

Assume $80,000,000 of .08 debt is substituted for stock (the debt is given to the shareholders).

a. The WACC of the levered firm is %.

b. Assume the unlevered firm was expected to earn

$15,384,600 before tax and earnings will continue at this level in the future. All earnings are distributed. The annual benefits to the investors in the levered firm will be ____________'

c. The correct rate to be used to discount the total benefits to all the' investors of the levered firm (with zero investor taxes) is %.

d. Compute the present value of the benefits to the investors.

PV ____________.

The value of the firm to these investors is____________.