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hi i need help with this question, can i also have the working out on how to arrive at the end calculation please.

in their analysis Both companies have annuel identical except for their capital structures. Both companies nterest rate is 73 20.48 per share er share. Jessica ant? What is the whole proceeds in Universal Shus. Debt-equity ratio and arbitrage (harder) [LO 2] Levity Ltd and Unicorn Ltd operate under the conditio without tax. The two companies are identical except for Lid operate under the conditions assumed by Modigliani and Miller in their or net operating cash flows of $10 million. The market value of Ish flows of $10 million. The market value of Levily's debt is $30 million. The interest per cent per annum. Levity has 1.25 million shares on issue, their com res on issue their current market price is $20.48 de Unicorn has no debt. It has 40 million shares on issue; their owns 10000 shares in Levity. 40 million shares on issue; their current market price is $1.30 per share. I the market value of Jessica's investmenta What is the current return on her investment? What risk of her investment, as measured by the debt-equity ration b) Show Jessica that each of the following strategies is an arbitrage: chieve a higher return at the same risk, first sell the 10000 shares in Levity, then borrow $2400 and invest the whole proceeds in Unicorn shares. m) lo achieve the same return at a lower risk first sell the 10000 shares in Levity, then borrow $ 192787 and invest the whole proceeds in Unicorn shares. c) What would Jessica need to do to achieve an investment in Unicorn that has the same return and risk as her current investment but also leaves cash left over to spend

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