MM with Corporate Taxes Companies U and L are identical in every respect except that U is unlevered while L has $14 million of 5% 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 $3 million. (4) The unlevered cost of equity is 12% a. What value would MM now estimate for each firm? (Hint: Use Proposition I.) 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 U: $ milion Company L: $ milion b. What is rs for Firm U? For firm L? Do not round intermediate calculations. Round your answers to one decimal place. Firm U: % Firm L: % c. Find SL, and then show that SL+D=VL results in the same value as obtained in Part a. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55 . Do not round intermediate calculations. Round your answers to two decimal places. SL=$SL+D=$millionmillion 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 L: %