Backcountry Adventures is a Colorado-based outdoor travel agent that operates a series of backcountry huts. Currently, the value of the firm is 3.5$ million. But profits will depend on the amount of snowfall: If it is a good year, the firm will be worth 5 $ million, and if it is a bad year it will be worth 2.5$ million. Suppose managers always keep the debt to equity ratio of the firm at 25% and the debt is riskless. Calculate the percentage change in the value of the firm, its equity and its debt once the level of snowfall is revealed, but before the firm adjusts the debt level to achieve its target debt to equity ratio. The inital amount of debt is equal to 0.74 and equity 2.96 PLEASE FILL OUT THE TABLE AND PROVIDE PRECISE CALCULATIONS

		Good state		Bad state
Change in firm value		42.86%		-28.57%
Change in equity value
Change in debt value