MM with Corporate Taxes Companies and L are identical in every respect except that U is unlevered while L has $14 million of 6% bonds outstanding, Assume: (1) All of the MM assumptions are met. (2) Both firms are subject to a 25% federal-plus-state corporate tax rate. (3) EBIT IS $4 million (4) The unlevered cost of equity is 10% a. What value would MM now estimate for each firm? (Hint: Use Proposition 1.) Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10,55. Round your answers to two decimal places. Company : $ 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: Firm U: 96 Firm Li C. Find Su and then show that Su+D=Vi results in the same value as obtained in Part a: Enter your answers in milions. For example, an answer of $10,550,000 should be entered as 10.55. Do not round Intermediate calculations. Round your answers to two decimal places SL- million SI+Ds million d. What is the WACC for Firm U? For Firm L? Do not round Intermediate calculations. Round your answers to two decimal places Firm U: Firm 96 +