The Aggie Company has EBIT of $60,000 and market value debt of $100,000 with a 9% coupon rate. The cost of equity for an all equity firm is 14%. Aggie has a 40% corporate tax rate. Investors face a 25% tax rate on debt receipts and a 20% rate on equity.

36. What is the value of Aggie as an unlevered firm?

37. What is the Miller leverage tax shield value for Aggie?

38. What is the value of Aggie as a levered firm?