An unlevered firm will be worth either $5000 (probability is o.1) or S15000 (probability is 0.9) in one year. The firm has the following capital structure: Equity Stocks: 1000 outstanding shares. cost of capital is 7%. Debt NA The firm plans to repurchase some of its existing shares by issuing one year bonds at 5%. The total amount collected from the issuance of bonds will be $6000. You are also given that the bankruptcy costs are $500 and the present value of financial distress costs is calculated at the debt cost of capital. Determine the market value of the fimm s equity after the repurchase. An unlevered firm will be worth either $5000 (probability is o.1) or S15000 (probability is 0.9) in one year. The firm has the following capital structure: Equity Stocks: 1000 outstanding shares. cost of capital is 7%. Debt NA The firm plans to repurchase some of its existing shares by issuing one year bonds at 5%. The total amount collected from the issuance of bonds will be $6000. You are also given that the bankruptcy costs are $500 and the present value of financial distress costs is calculated at the debt cost of capital. Determine the market value of the fimm s equity after the repurchase