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17-6: Capital Structure Theory: Arbitrage Pros of the Moon Theorems Problem 17-6 MM without Taxes...

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17-6: Capital Structure Theory: Arbitrage Pros of the Moon Theorems Problem 17-6 MM without Taxes Companies and Larential in every respect except that s evered while has 512 m.ion of bonds standing that (1) there were corporate personal taxes, (2) of the other o p tions are met. (3) EBIT is 53 mion, and (4) the cost of equity to Company is 10% What value would estimate for each im Enter your answers in ons. For example answer of 12 t h bented 1.2, 1.200.000. Round your answers to two decimal places Company U $ 30.00 min Company L $ 30.00 million b. What is rs for Form U? Round your answer to two decimal places 10.00 What is rs for FirmL Do not round intermediate calculations. Round your answer to two decimal places c. Find S. Round your answer to two decimal places. Enter your answer in millions. For example, an answer of 51.2 milion should be entered a 1.2 million 1.200.000 d. What is the WACC for Firm Up Round your answer to one decimal place What the WACC for Firm Round your answer to one decimal place e. Suppose Vu $20 million and V-522 million. According to MM, are these values consistent with equilibrium? Select

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