3. Miller model Aa Aa Carlson Co. and Baker Corp. are identical in every respect except that Carlson is unlevered and Baker has $19.8 million of 5% bonds outstanding. Assume all of the following: 1. All of Modigliani and Miller's assumptions are met. 2. Both firms are subject to a 34% corporate tax rate. 3. EBIT is $6.0 million for both firms. 4. Investors in both firms face a tax rate (Ta) of 34% on debt income and a tax rate (Ts) of 8% on stock income 5. The rate of return before personal taxes (ru) is 896. Use Miller's model to fill in the table for Carlson Co. and Baker Corp. Carlson Co. Baker Corp. Value of the firm Value of the stock Cost of equity WACC