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Acort Industries owns assets that will have a(n) 75% probability of having a market value of $59 milion in one year. There is a 25%

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Acort Industries owns assets that will have a(n) 75% probability of having a market value of $59 milion in one year. There is a 25% chance that the assets wilt be worth only $20 million. The current risk free rate is 10%, and Acort's assets have a cost of capital of 20% a. If Acort is unlevered, what is the current market value of its equity? b. Suppose instead that Acort has dobt with a face value of $20 milion duo in one year According to MM, what is the value of Acort's equity in this case? c. What is the expected return of Acort's equity without everage? What is the expected return of Acort's equity with loverage? d. What is the lowest possible realized return of Acort's equity with and without loverage? a. 11 Acort is unlevered what is the current market value of its equity? The current market value of the unlevoted equity is million (Round to three decimal places) b. Suppose instead that Acort has debt with a face value of $20 millon due in one year. According to MM, what is the value of Acort's equally in this case? According to MM, the current market value of the lovered equity's multion (Round to three decimal places) c. What is the expected return of Acorts equity without leverage? What is the expected return of Acorts equity with leverage? The expected return of Acorts equity for both cases is Expected Return Without Leverage % (Round to two decimal places) 1% (Round to two decimal places) in lin With Leverage d. What is the lowest possible realized return of Acort's equity with and without leverage? The lowest possible realized return of Acort's equity in both cases will be Without Loverage With Leverage Realized Return (Round to two decimal places) % (Round to two decal places.) Enter your answer in each of the answer boxes

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