Company AAA and Company ZZZ have differences in their capital structures, but other than that they are pretty much alike. In this problem youwill need tocalculate the value of each company's Equity.

Given:

Company AAA:

• Unlevered.
• Annual income is tax-free.
• $11.8 million inEBIT is expected to be earned every year forever.
• No net income is retained, and the full amount is used to paydividends. 4.1 million shares are currently being traded in the market. Each share currently sells for $65.

Company ZZZ:

• Levered.
• Annual income is tax-free.
• $66 million is the market value of its debt. The debt has the following characteristics: neverendinginterest payments, 7 % interest rate.
• $11.8 million inEBIT is expected to be earned every year forever.
• No net income is retained, and the full amount is used to paydividends.2.4 million shares are currently being traded in the market. Each share currently sells for$82.

(Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.)