If the firm is all-equity financed, the expected return on unlevered equity is 10%. If the firm chooses to borrow $500 million to finance the project, the expected return of the debt is 5%. Assume Modigliani & Miller (MM) perfect capital market with no corporate tax, if the levered equity is $2000 million, what is the expected return on equity for the levered firm? If the firm chooses to borrow $1000 million, does the firm value change, why?