MM with Corporate Taxes Companies U and L are identical in every respect except that is unlevered while L has $10 million of 8% bonds outstanding. Assume that: (1) All of the MM assumptions are met. (2) Both firms are subject to a 35% federal-plus-state corporate tax rate. (3) EBIT is $3 million. (4) The unlevered cost of equity is 12% a. What value would MM now estimate for each firm? (Hint: Use Proposition 1.) Enter your answers in milions. For example, an answer of $10,550,000 should be entered as 10.55. Round your answers to two decimal places Company U: $ million Company L: 5 million b. What is rs for Firm U7 Round your answer to one decimal place 9 What is rs for Firm L? Do not round intermediate calculations, Round your answer to one decimal place. c. Find Su and then show that S +DV results in the same value as obtained in Part a. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Do not round Intermediate calculations, Round your answers to two decimal places, S-$ million S + D - million d. What is the WACC for Firm U? Do not round intermediate calculations. Round your answer to two decimal places What is the WACC for Firm L? Do not round intermediate calculations. Round your answer to two decimal places