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Question 18 4 pts Companies U and L are identical in every respect except that U is unlevered while L has $12 million of 7%

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Question 18 4 pts Companies U and L are identical in every respect except that U is unlevered while L has $12 million of 7% bonds outstanding. Assume that all of the original M&M assumptions are met, that EBIT is $3 million for both companies and that the cost of equity to company U is 9%. If there are no corporate or personal income taxes what is the M&M value for firm U. $42.86 million O $33.33 million $133.33 million None of the above

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