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5. Adding growth to the model Sunny Co. has a value of $20 million. Markus is otherwise identical to Sunny Co., but has $8 million

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5. Adding growth to the model Sunny Co. has a value of $20 million. Markus is otherwise identical to Sunny Co., but has $8 million in debt. Suppose that both firms are growing at a rate of 5%, the corporate tax rate is 37%, the cost of debt is 6%, and Sunny's cost of equity is 15% (assume rsu is the appropriate discount rate for the tax shield). Use the Modigliani and Miller theory extension for growth to complete the following table: (Note: Round your answer up to 2 decimal places.) Markus Co. Sunny Co. $20 million Value of the firm Value of the stock $20 million Cost of equity 15%

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