Question: help. 2. Adding growth to the model Scorecard Corp, has a value of $70 million, Carlson is otherwise identical to Scorecard Corp, but has $28

help.
help. 2. Adding growth to the model Scorecard Corp, has a value

2. Adding growth to the model Scorecard Corp, has a value of $70 million, Carlson is otherwise identical to Scorecard Corp, but has $28 million in debt. Suppose that both firms are growing at a rate of 79, the corporate tax rate is 38%, the cost of debt is 7%, and Scorecard's cost of equity is 9% (assume ry 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.) Scorecard Corp. $70 million Carlson Co. Value of the Firm Value of the stock $70 million Cost of equity 9%

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