Q$\mathrm{.}2$ Create a Reverse Arbitrage Transaction based on following information about two firms A & B$.$ Assume the investor has $10\%$ shareholding in firm B

KE $15\%$

KD $10\%$

A$($Unlevered$)$ B $($Levered$)$ Current Market value of B$($levered$)$

Total Assets $1000010000$

Debt $05000$

Equity $100005000$

EBIT $30003000$

Interest $0\%50000\%$

PAT $300000\%250000\%$

Value of debt $0500000\%$

Value of equity $2000000\%1500020000$

Firm value $2000000\%2000000\%2500000\%$

as per M&M it should be $15000$ as firm value of A & B should be equal. But the Firm value of B is $25000$ due to market price of equity being $20000$