My firm has FCF = 1000 and is unlevered. The required return as an unlevered firm is ru = 10%. Shareholders have been clamoring for some increase in debt. The firm has the following strategy stated as follows: a) We will permanently issue $500 of debt b) And temporarily issue $500 of debt, paying of the amount owed at the end of each of the next 5 years c) The combined debt proceeds will be used to pay a dividend to shareholders d) We can borrow risk free at 4% and are certain of our ability to pay interest and principal out of earnings The corporate tax rate = 25%. Assuming no personal tax complications and/or distress costs, what is the PVTS from the strategy and what is the value of the levered firm (VL), value of debt and value of equity after the initial combined debt issue?