Meta Corporation and Zeta Corporation are identical in every way except their capital structures . Meta orporation is an all - equity firm . Zeta Corporation uses leverage in its capital structure . The market value of Zeta's debt is $ 85,000 . Each firm is expected to have earnings before interest and tax of $ 93,000 in per petuity . Corporate tax rate for both corporation is 30 % . Assume the annual unlevered cost of capital is 8 % .

( 1 ) . What is the value of Meta Corporation ?

( 2 ) . What is the value of Zeta Corporation ?