Air Taxi, Inc. and Wing Air, Inc. are identical in every way, except that Wing Air is a more levered firm. Both companies expect to remain in business for one more year. Here are the economist projections for the next year: Probability of expansion 75% Probability of recession 25% Expansion EBIT $3,700,00 $2,100,000 $850,000 Wing Air debt payment $1,300,000 12% Recession EBIT Air Taxi debt payment Annual discount rate What is the value of each firm's debt and equity