Jack and Ben are professional financial analysts, and they are good friends. Jack is working at Tarko Inc., and Ben is working for Greengrow Inc. They know that the capital markets are perfectly competitive, and the corporate tax rate is Tc. They also know that the cost of Financial distress is zero. Currently, both firms, Tarko Inc., and Greengrow Inc. are debt-free and have the same value. Jack and Ben are considering issuing debt and raising the financial leverage of their companies. Does Tarko Inc. with twice financial leverage of Greengrow Inc. have twice the value?

Jack believes on the above statement, but Ben disagrees with it.

Who is right and why? Show the detailed calculation.