2. A firm is interested in using a combination of debt and equity to finance a business. However, the future is uncertain. Both potential bondholders and stockholders know this. The following table presents the 4 possible states of the world in one period in the future. For each state there is the probability of the respective state and the operating earnings for each state. The firm is interested in raising $1million, half from bondholders and half from equity investors. The stated interest rate for borrowing is 5%. Bondholders get paid off first if there are sufficient funds. If there are sufficient funds bondholders will make back the face value of the bond ($500k) plus interest. If there aren't sufficient funds, the bondholders would receive everything available. Stockholders receive everything that is left after bondholders have been paid. State Probability Operating earnings 0.2 300,000 01.3 500,000 0.4 700,000 0.1 2,000,000 ") How much would shareholders be willing to invest in this business? (5) b) How much would bondholders be willing to invest in this business? (5)