Company A and Company B are identical in every respect except Company A is unlevered and Company B has $1 million of perpetual debt with an interest rate of 6%. Expected EBIT for both firms is $900,000 in perpetuity and all available earnings are immediately distributed to common shareholders. Company A's cost of equity is 18%. Assume all M&M assumptions are satisfied.

For parts (a) to (c), assume there are no personal or corporate taxes (a) According to M&M Proposition I without taxes, what is the value of each firm? (b) According to M&M Proposition II without taxes, what is the cost of equity for Company B? (c) According to M&M Proposition II without taxes, what is the WACC for each firm?

For parts (d) to (f), assume there are no personal taxes but the corporate tax for both companies is 30% (d) According to M&M Proposition I with taxes, what is the value of each firm? (e) According to M&M Proposition II with taxes, what is the cost of equity for Company B? (f) According to M&M Proposition II with taxes, what is the WACC for each firm?