3. Miller model Aa Aa Sunny Co. and Markus Co. are identical in every respect except that Sunny is unlevered and Markus has $14.9 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 38% corporate tax rate. 3. EBIT is $6.0 million for both firms. 4. Investors in both firms face a tax rate (Ta) of 32% on debt income and a tax rate (Ts) of 896 on stock incom 5. The rate of return before personal taxes (rw) is 10%. Use Miller's model to fill in the table for Sunny Co. and Markus Co. Markus Co. Sunny Co. Value of the firm Value of the stock Cost of equity WACC 3. Miller model Aa Aa Sunny Co. and Markus Co. are identical in every respect except that Sunny is unlevered and Markus has $14.9 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 38% corporate tax rate. 3. EBIT is $6.0 million for both firms. 4. Investors in both firms face a tax rate (Ta) of 32% on debt income and a tax rate (Ts) of 896 on stock incom 5. The rate of return before personal taxes (rw) is 10%. Use Miller's model to fill in the table for Sunny Co. and Markus Co. Markus Co. Sunny Co. Value of the firm Value of the stock Cost of equity WACC