Scenario: Wonka Industries has EBIT of $10M; after-tax debt cost of 5%; equity cost of 9%; capital structure is $30M Debt and $30M Equity; and its tax Rate = 21%. Bondholders estimate the probability of default at 1% and the expected costs of bankruptcy at $50M.

1. Calculate the Expected Value of Bankruptcy Costs. Please, Share your math and results.
2. Calculate the firm's value, including tax benefit, and subtracting the expected value of bankruptcy.

Thank you!