As part of a leverage buyout transaction, a public company worth $$6\mathrm{.}3$B with no debt was taken

private. The company borrowed $$4\mathrm{.}0$B in perpetuity to finance the deal, using the proceeds to buy back stock.

If the company pays taxes at $20\%,$ what is the value of the levered firm after the recapitalization, and what

is the market value of the equity holders remaining position? Ignore risks of financial distress.