Sue Inc. is an unlevered firm that has EBIT of $$2,000,000$ and a required return on equity of $10\%.$ The firm has a corporate tax rate of $40\%$ and has estimated that the tax rates for its investors are $25\%$ on stock income and $50\%$ on bond income. Assume That the Miller$$s personal tax case holds.

a$)$ Assume that Sue Inc. can issue any level of debt for a fixed $($before$-$tax$)$ rate of $8\%.$ What will the total value of the firm be if it issues the following levels of debt and uses the proceeds to repurchase shares:

$$ $$1,000,000$

$$ $$2,000,000$

$$ $$5,000,000$

$$ $$10,000,000$