use this Information below to answer the following questions. KD Industries has 30 million shares outstanding with a market price of $20 per share and no debt. KD has had consistently stable earnings, and pays a 21% tax rate. Management plans to borrow $200 million on a permanent basis through a leveraged recapitalization in which they would use the borrowed funds to repurchase outstanding shares.

13) The value of KD's unlevered equity is closest to: A) $600 million. B) $470 million. C) $390 million. D) $400 million.

14) After the recapitalization, the total value of KD as a levered firm is closest to: A) $470 million. B) $730 million. C) $642 million. D) $530 million.

15) If KD can repurchase its existing shares at $20 per share, what will the new share price be after the transaction? A) $22.35 B) $22.00 C) $22.65 D) $22.10

16) If KD expects the share price to increase from $20 per share to a new share price on announcement of the transaction and before the shares are repurchased, what will the new share price be after the announcement? A) $21.40 B) $22.65 C) $22.00 D) $23.50

17) How many shares will KD repurchase in the recapitalization if the share price increases upon announcement and before the recapitalization? A) 12.54 million shares B) 8.96 million shares C) 3.65 million shares D) 9.35 million shares

18) Assume that the corporate tax rate is 21%, the personal tax rate on income from equity is 15% and the personal rate on interest income is 36%. The effective tax advantage of a corporation issuing debt would be closest to: A) -4.9%. B) 15.0%. C) 25.0%. D) 28.0%.

19) Suppose DFB restructures its existing debt and will pay $80 million in interest each year for the next 10 years, and then repay the principal of $1.6 billion in year 10. These payments are risk free, and DFBs marginal tax rate will remain 25% throughout this period. If the risk-free interest rate is 5%, by how much does the interest tax shield increase the value of DFB? A) $470 million. B) $154 million. C) $642 million. D) $530 million.

20) Western Lumber Company expects to have free cash flow in the coming year of $4.25 million, and its free cash flow is expected to grow at a rate of 4% per year thereafter. Western Lumber has an equity cost of capital of 10% and a debt cost of capital of 6%, and it pays a corporate tax rate of 21%. If Western Lumber maintains a debt-equity ratio of 0.50, what is the value of its interest tax shield? A) $9 million. B) $12 million. C) $10 million. D) $5 million.

Please don't use excel its confusing to me. The answers are 13, A 14, C 15, D 16, A 17, D. I want to know how they were answer. Thank you so much.