Baker Corp. and Tucci Co. are identical in every respect except that Baker is unlevered and Tucci has $3.8 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 34% corporate tax rate.

3) EBIT is $2.0 million for both firms.

4) Investors in both firms face a tax rate (Td) of 34% on debt income and tax rate (Ts) of 8% on stock income.

5) The rate of return before personal taxes (rsU) is 14%.

Use Miller's model to fill in the table for Baker Corp. and Tucci Co.

	Baker Co	Tucci Co.
Value of Firm
Value of Stock
Cost of Equity
WACC