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Levered, Inc., and Unlevered, Inc., are identical in every way except their capital structures. Each company expects to earn $ 2 8 . 4 million

Levered, Inc., and Unlevered, Inc., are identical in every way except their capital structures. Each company expects to earn $28.4 million before interest per year in perpetuity, with each company distributing all its earnings as dividends. Levereds perpetual debt has a market value of $85 million and costs 9 percent per year. Levered has 1.7 million shares outstanding, currently worth $121 per share. Unlevered has no debt and 3.9 million shares outstanding, currently worth $73 per share. Neither firm pays taxes.
What is the value of each firm? (Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, e.g.,1,234,567.)

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