A company is an all-equity firm that has projected earnings before interest and taxes (EBIT) of $500,000 forever. The current cost of equity rS=8% and the tax rate T=20%. The company is in the process of issuing $1.5 million of bonds at par that carry a 6% annual coupon. What is the unlevered value of the firm (in millions)? (Note: You should use MM capital structure model with corporate taxes, but without personal taxes and bankruptcy costs. The formula for the value of unlevered firm: VU=EBITx(1T)/rS). $4.00 million $5.00 million $2.86 million $4.50 million QUESTION 9 According to the information from Question 8 , what is the levered value of the firm (in millions)? (Note: The value of levered firm VL=VU+ Present value of annual interest tax shield) $4.30 million $4.60 million $5.00 million $5.30 million