Firm U and Firm L are identical in every respect except that U is unlevered while L has $10 million of 5% bonds outstanding. Assume that all of the MM assumptions are met, there are no corporate or personal taxes, EBIT is $2 million, and the cost of equity to Company U is 10%. 1. What value would MM estimate for each firm? 2. What is ks for Firm U? For Firm L? 3. Find S(the value of the equity for Firm L), then show that SL+D - VL = $20 million. 4. What is the WACC for Firm U? For Firm L? 5. Suppose Vy = $20 million and V1 = $22 million. According to MM, do these values represent an equilibrium? If not, briefly explain the process by which an equilibrium would be restored