Companies U and L are identical in every respect except that U is unlevered while L has $10 million of 5% bonds outstanding. Assume that (1) all of the MM assumptions are met, (2) both firms are subject to a 40% corporate tax rate, (3) EBIT is $2 million, and (4) the unlevered cost of equity is 10%. a. What value would MM now estimate for each firm? (Use Proposition I with corporate taxes.) b. What is rs for Firm U? For Firm L ? c. Find SL, and then show that SL+D=VL results in the same value as obtained in part a. d. What is the WACC for Firm U? For Firm L