XY company and ZY Corp. are two firms in the retail sector that have identical assets and generate identical cash flows. XY company is an all-equity firm, with 20 million shares outstanding that trade for a price of $22 per share. ZY Corp. has 40 million shares outstanding as well as debt of $200 million. a. According to MM Proposition I, what is the stock price for ZY Corp? Explain your steps. b. Suppose ZY Corp. stock currently trades for $11 per share. What arbitrage opportunity is available? What assumptions are necessary to exploit this opportunity?