Stanley Corp is operating in a country K where the corporate tax is 40%, personal income tax on bond investment is 25% while the personal tax on stock is 29%. Assume the firms earnings before interest and taxes are $2,400,000 and the cost of equity with zero debt is 9%.

1. If Stanley currently has $12 million total market value of debt financing, what would be the market value of the company of Stanley Corp in country K?
2. What is the proportion of debt (wd) and equity (ws) financing for Stanley Corp with financial leverage?