I need help with followings :

Two companies X and Y belong to the equivalent risk group. The two companies are identical in every respect except that Y is a levered while company X is unlevered. The outstanding amount of debt of the levered company is $ 600,000, in 12% debenture. The other information for the two companies is as follows: Particulars X Y Net operating income (EBIT) $ 150,000 $ 150,000 Interest on debt (1) 72,000 Earnings to equity holders (E) 150,000 78,000 Equity capitalization rate (Ke) 0.15 0.16 Market value of equity (S) 1,000,000 487,500 Market value of debt (B) 600,000 Total value of the firm (V) 1,000,000 1,087,500 Overall capitalization rate (Ko) 0.15 0.1379 Debt/equity ratio 0 1.23 An investor owns 15 per cent equity shares of company Y. Show the arbitrage process and the amount by which he/she could reduce his outlay through the use of leverage