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Business, 20.09.2019 05:20 clipsyden

Companies u and l are identical in every respect except that u is unlevered while l has $18 million of 6% 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 10%. 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.

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