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Both firms are subject to a 25% federal-plus-state corporate tax rate. (3) EBIT is $3 million. (4) The unlevered cost of equity is 10%. 10.55.

image text in transcribed Both firms are subject to a 25% federal-plus-state corporate tax rate. (3) EBIT is $3 million. (4) The unlevered cost of equity is 10%. 10.55. Round your answers to two decimal places. Company U: $ million Company L: \$ million b. What is rs for Firm U? For firm L? Do not round intermediate calculations. Round your answers to one decimal place. \begin{tabular}{lc} Firm U: & % \\ Firm L: & % \end{tabular} entered as 10.55. Do not round intermediate calculations. Round your answers to two decimal places. SL=$SL+D=$millionmillion d. What is the WACC for Firm U? For Firm L? Do not round intermediate calculations. Round your answers to two decimal places. \begin{tabular}{lll} Firm U: & \\ Firm L: & % \end{tabular}

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