U and L are two firms with the same EBIT of $$125,000.$ They are identical in every respect except firm L has a debt of $$800,000$ at $6\%$ rate of interest. The cost of equity of firm U is $8\%$ and that of firm L is $10\%.$ Assume that arbitrage principle will be applied in this setting and it is possible to make an arbitrage profit $($surplus$).$ Also, all earnings streams are perpetuities, taxes are ignored and both firms distribute all earnings available to common shareholders.

Assume that an investor has $20\%$ of shares $($equity$)$ of the firm L and MM assumptions hold. That is$,$ you will be able to borrow or lend at the same rate as the firms can $(6\%).$ How much would the arbitrage profit $($surplus$)$ be for that investor who owns $20\%$ of equity of the firm L and plans to create that arbitrage by switching to firm U with the same percentage of ownership? $($Do not use the $ sign in your answer. If your answer is $$12,345\mathrm{.}67,$ then enter $12345\mathrm{.}67)$