Dynamic Capital Structures and Corporate Valuation Graded Assignment | Read Chapter 21 | Back to Assignment Due Thursday 05.10.18 at 05:00 PM Attempts: Average: /8 Aa Aa 3. Miller model Baker Corp. and Tucci Co. are identical in every respect except that Baker is unlevered and Tucci has $8.5 million of 5% bonds outstanding. Assume all of the following: 1. All of Modigliani and Miller's assumptions are met. 2. Both firms are subject to a 36% corporate tax rate. 3. EBIT is $4.0 million for both firms 4, investors in both firms face a tax rate (Td) of 34% on debt income and a tax rate (Ts) of 10% on stock income. 5. The rate of return before personal taxes (rs) is 12%. Use Miller's model to fill in the table for Baker Corp. and Tucci Co. Tucci Co. Value of the firmRTT Value of the stock WACC