Back to Assignment Attempts: Average: 73 Attention: Due to a bug in Google Chrome, this page may not function correctly. Click here to learn more. 2. Adding growth to the model Aa Aa E Sunny Co. has a value of $40 million. Markus is otherwise identical to Sunny Co., but has $16 million in debt. Suppose that both firms are growing at a rate of 6%, the corporate tax rate is 39%, the cost of debt is 6%, 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: Markus Co. Sunny Co. $40 million Value of the firm Value of the stock Cost of equity $40 million 9%