The firm originally is 100% financed by equity (Unlevered firm). The EBIT for the firm is $20,000. The cost of capital for this unlevered firm is 10%. The tax rate is 40%. Systematic risk of the asset is 2. Now assuming that the firm issues $15,000 debt to buy back some shares, and the debts are traded at par value. Assuming that the cost of debt =8%. What is the pv of the annual tax shield? What is the value for the unlevered and levered firm? What is weighted average cost of capital?