Companies U and L are identical in every respect except that U is unlevered while L has $20 million of 6%

Companies U and L are identical in every respect except that U is unlevered while L has $20 million of 6% bonds outstanding. Assume that (1) all of the MM assumptions are met, (2) both firms are subject to a 35% federal-plus-state corporate tax rate, (3) EBIT is $4 million, and (4) the unlevered cost of equity is 13%.