An unlevered firm has a value of $500 million. an otherwise identical but levered firm has $160 million in debt. under the miller model, what is the value of the levered firm if the corporate tax rate is 40%, the personal tax rate on equity is 15%, and the personal tax rate on debt is 30%? enter your answer in millions. for example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. do not round intermediate calculations. round your answer to two decimal places.$ million

d) There is no cash flow

Explanation:

There is no cash flow because a stock dividend refers to a dividend that is paid by issuing additional shares to shareholders of a company instead of paying them a cash dividend.

Therefore, there is no cash flow since no cash is received nor paid.

Note: To record stock dividends, the amounts is moved from retained earnings to paid-in capital; and the evidence that no cash is received nor paid is that the journal entries for the issue of stock dividend will be as follows:

Debit Retained for $12,000 (i.e. 1,000 * $12 = $12,000)

Credit Common Stock for $10,000 (i.e. 1,000 - $10 = $10,000)

Credit Additional Paid-In Capital in Excess of Par - Common Stock for $2,000 ($12,000 - $10,000)