An all-equity firm has the following expected values in one year, depending on the state of the economy:

State Recession Boom Probability 0.5 0.5 Expected firm value 50 230

The firm's cost of capital is 25%.

Part 1 What is the firm's value now?

0+ decimals Part 2 From now on, assume that you want to borrow $60for one year to buy the firm. The expected rate of return on the loan is 17%. What is the face value of the bond?

0+ decimals Part 3 What is the expected rate of return on the levered equity?