Adding growth to the model

Sunny Co. has a value of $70 million. Markus is otherwise identical to Sunny Co., but has $28 million in debt. Suppose that both firms are growing at a rate of 7%, the corporate tax rate is 36%, the cost of debt is 8%, and Sunny's cost of equity is 9% (assume rsu)

is the appropriate discount rate for the tax shield).

Use the Modigliani and Miller theory extension for growth to complete the following table: (Note: Round your answer up to 2 decimal places.)

Sunny Co. Markus Co.

Value of the firm $70 million

Value of the stock $70 million

Cost of equity9%