Please show how you've got the solutions, as well.)

You have two identical firms except that one is levered and the other unlevered.

And assume that EBIT: $10,000, interest: $1,000,: 10%, kb: 5%.

Without tax, the firm value of unlevered firm is ($) and that of levered firm ($).

With 20% of corporate tax, the firm value of unlevered firm is ($)

and that of levered firm ($).

Suppose that you have $9,000. When there is no tax, if you use the money to buy

levered firm's equity, your ROE should be (%).