Wrenched Inc. and Unwrenched Inc. are identical companies with identical business risk. Their earnings are perfectly correlated. Each company is expected to earn $96 million per year in perpetuity, and each company distributes all its earnings. Wrenched Inc. has debt that provides a return of 8% and has a market value of $275 million. Wrencheds stock sells for $100 per share and there are 4.5 million shares outstanding. Neither firm pays taxes. Unwrenched Inc. has 10 million shares outstanding worth only $80 each. Unwrenched Inc. has no debt. Which stock is the better investment and how could an arbitrageur take advantage of the asset mispricing?