Barn Industries owns assets that will have a 80% probability of having a market value of $50 mil in one year. There is a 20% chance that the assets will be worth only $20 mil. The current risk-free rate is 5%, and Acort's assets have a cost of capital of 10%.

a. If Barn is unlevered, what is the current market value of its equity? b. Suppose instead that Barn has debt with a face value of $20 million due in one year. According to MM, what is the value of Barn's equity in this case? c. What is the expected return of Barn's equity without leverage? What is the expected return of Barn's equity with leverage? d. What is the lowest possible realized return of Barn's equity with and without leverage?