Assume that Firms U and L are in the same risk class and that both have EBIT $500,000. Firm U uses no debt financing, and its cost of equity is rs U 14%. Firm L has $1 million of debt outstanding at a cost of rd 8%. There are no taxes. Assume that the MM assumptions hold. Graph: (a) the relationships between capital costs and leverage as measured by D/V and (b) the relationship between V and D.