What is the value of each company equity

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Levered, Inc., and Unlevered, Inc., are identical in every way except their capital structures. Each company expects to earn $29.7 million before interest per year in perpetuity, with each company distributing all its earnings as dividends. Levered’s perpetual debt has a market value of $98 million and costs 9 percent per year. Levered has 3.0 million shares outstanding, currently worth $112 per share. Unlevered has no debt and 5.2 million shares outstanding, currently worth $87 per share. Neither firm pays taxes.

What is the value of each company's equity? (Do not round intermediate calculations. Enter your answers in dollars, not millions of dollars, i.e., 1,234,567.)

Value of equity

 Unlevered $

 Levered $

Reference no: EM132014378

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