Question: Adding growth to the model Tucci Co . has a value of $ 4 0 million. Strong is otherwise identical to Tucci Co . ,

Adding growth to the model
Tucci Co. has a value of $40 million. Strong is otherwise identical to Tucci Co., but has $16 million in debt. Suppose that both firms are growing at a
rate of 7%, the corporate tax rate is 35%, the cost of debt is 7%, and Tucci's cost of equity is 13%(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 all final answers to two decimal places.)
 Adding growth to the model Tucci Co. has a value of

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