Assignment Score: 40.00% s Problem 17-02 (MM Model with Corporate Taxes) Save Submit Assignment for Grading Question 2 of 5 Check My Work eBook Problem Walk-Through MM Model with Corporate Taxes An unlevered firm has a value of $700 million. An otherwise identical but levered firm has $200 million in debt at a 4% interest rate. Its pre-tax cost of debt is 4% and its unlevered cost of equity is 10%. No growth is expected. Assuming the corporate tax rate is 35%, use the MM model with corporate taxes to determine the value of the levered firm. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Round your answer to the nearest whole number. million Hide Feedback Incorrect Check My Work A 2 6:26 PM 03/18/20