Firms A and B are similar except that A is unlevered, while B has Rs. 2,00,000 of 5 per cent debentures outstanding. Assume that the tax rate is 40 per cent; NOI is Rs. 40,000 and the cost of equity is 10 per cent. (i) Calculate the value of the firms, if the MM assumptions are met. (ii) Suppose VB= Rs. 3,60,000. According to MM, do these represent equilibrium values? How will equilibrium be set? Explain