Marpor Industries has no debt and expects to generate free cash flows of 17 million each year. Marpor believes that if it permanently increases its level of debt to 45 million, the risk of financial distress may cause it to lose some customers and receive less favorable terms from its suppliers. As a result, Marpor's expected free cash flows with debt will be only 16 million per year. Suppose Marpor's tax rate is 30% , the risk-free rate is 5% , the expected return of the market is 15% , and the beta of Marpor's free cash flows is 1.2 (with or without leverage).

a. Estimate Marpor's value without leverage.

Marpor's value without leverage is $ 100 million. (Round to the nearest integer.)

b. Estimate Marpor's value with the new leverage.

Marpor's value with the new leverage is $ 113.5 million. (Round to two decimal places.)