This problem is from Financial Management Theory and Practice 16 edition by Brigham, E. F., & Ehrhardt, M. C. (2019). Cengage Limited. Answers in the back of the book indicate that answers are HV=$390 and V=$336.7347. Please show calculations and explanations so that I may learn from you. Thank you.

PROBLEM 22-3 (Page 889)

Tax Shield Value

(a) What is the horizon value of the unlevered operations?

(b) What is the total value of unlevered operations at Year 0?

(c) Wilde Software Development has a 12% unlevered cost of equity. Wilde forecasts the following interest expenses, which are expected to grow at a constant 4% rate after Year 3. Wilde's tax rate is 25%.

Interest expenses: Year 1: $80, Year 2: $100, Year 3: $120

(c.1) What is the horizon value of the interest tax shield?

(c.2) What is the total value of the interest tax shield at Year 0?