--Roxy Broadcasting was originally an all-equity firm with a before-tax value of $ 20,000,000. Determine the size of the tax shield with a corporate tax rate of 12%, 26%, 36%, and 42% if Roxy's capital structure is 30/70 debt to equity. Determine the same if the capital structure is 70/30

-- Air Seattle has an annual EBIT of $1,500,000, and the WACC in the unlevered firm is 19 %. The current tax rate is 20%. Air Seattle will have the same EBIT forever. If the company sells debt for $ 2,200,000with a cost of debt of 21%, what is the value of equity in the unlevered firm and in the levered firm? What is the value of debt in the levered firm? What is the government's value in the unlevered firm and in the levered firm?

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