A- 3 4 5 eBook 1 Problem Walk-Through MM Model with Corporate Taxes An unlevered firm has a value of $900 million. An otherwise identical but levered firm has $40 million in debt at a 4% interest rate, Its pre-tax cost of debt is 4% and its unlevered cost of equity is 11%. No growth is expected. Assuming the corporate tax rate is 40%, use the MM model with corporate taxes to determine the value of the levered firm. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Round your answer to the nearest whole number. million 7 B. 9