NoLeverage is a firm financed entirely with equity and Leverage is a firm financed with 50-50 equity and debt, but otherwise the two firms are identical. Both firms have an annual NOP of $2 million and operate in a perfect capital market. Also, for both firms the required return on assets, is 9.5% and cost of debt is 2%. Answer the following questions:

1. Calculate and report market value of debt for NoLeverage

2. Calculate and report market value of debt for Leverage

3. Calculate and report market value of equity for NoLeverage

4. Calculate and report market value of equity for Leverage

5. Calculate and report firm value for NoLeverage

6. Calculate and report firm value for Leverage