Treasure Island Inc is currently $100\%$ equity financed with $0\%$ debt. Treasure Island is

currently based in a tax haven with $0\%$ corporate income tax. The firm is considering taking

on debt capped at $0\mathrm{.}5x$ of equity. It is also considering moving its headquarters to Ireland

which currently has a tax rate of $12\mathrm{.}5\%$ but you are concerned that recent tax proposals by

the OECD will result in Treasure Island paying $15\mathrm{.}0\%$ corporate tax. Any funds raised by debt

issuance will be used to repurchase existing shares at the current share price based on the

value without taxes or debt. The firm currently has $10,000$ shares outstanding. Using your

knowledge of Modigliani and Miller I & II calculate the following under four scenarios:

Firm Value Unlevered $($ Vu