2. Sami Co. is currently an unlevered fim with an expected return of 10%. The expected EBIT is RO 40,000 forever. Sami Co. distributes all the net income to the equity holders. The firm is considering a leveraged recapitalization in which it would borrow RO 150,000 at 5 percent and repurchase existing shares. The corporate tax rates is 30%. 1. Calculate the equity value of levered firm. (1 pt) What is the cost of capital of levered firm