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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

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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 Probability of recession Expansion EBIT 25% $3,700,000 $2,100,000 $850,000 Recession EBIT lirTosd debt payment $850.000 Wing Air debt payment $1,300,000 Annual discount rate 12% | What is the value of each firm's debt and equity

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