answer and show work/explanation please!

22. Marpor Industries has no debt and expects to generate free cash flows of $16 million each year. Marpor believes that if it permanently increases its level of debt to $40 million, the risk of financial distress may cause it to lose some customers and receive less favorable terms from its suppliers. As a result, Marpor's expected free cash flows with debt will be only $15 million per year. Suppose Marpor's tax rate is 35%, the risk free rate is 5%, the evpoeied rembi of the market is 15%, and the beta of Marpor's free cash flows is 1.5. a. Estimate Marpor's value without leverage b. Estimate Marpor's value with the new leverage