Balance sheet of ABC company anunleveredTotal assetsTotal assetsIncome statement of ABC as an unleveredfirmEBITLnterest on debtEBTTax $(40\%)$Balance sheet of ABC company as a leveredfirm$|$Total assetsTotal assetsomeIncome statement of ABC as a levered firmEBITInterest on debtEBTTax $(40\%)$Net incomethe cost of capital for unlevered firm is $12\%.$Required:Oetb$)12000000$equity$240000012000000$equity$2400000600001,440,00012000000$Debt $(10\%)$Stockholders$2400000600000$Stockholders'$12000000$Debt and equity$1800000720000$Stockholders'$1080000$equitya$)$ Apply the Modigliani and Miller concepts to show the relationshipn the value of the levered and unlevered firm.$|$Assume the after tax net incomes for an unlevered and a levered are perpetual and$ate the weighted average cost of capital $-$ levered firm$120000001200000060000006000000120000002$