Consider a simple firm that has the following market value balance sheet: Assets $1 040 Liabilities end equity Debt Equity $410 630 Next year, there are two possible values for its assets, each equally likely: $1 210 and $970. Its debt will be due with 5.1% interest. Because all of the cash flows from the assets must go to either the debt or the equity, if you hold a portfolio of the debt and equity in the same proportions as the firm's capital structure, your portfolio should earn exactly the expected return on the firm's assets. Show that a portfolio invested 39% in the firm's debt and 61% in its equity will have the same expected return as the assets of the firm. That is, show that the firm's pre-tax WACC is the same as the expected return on its assets. If the assets will be worth $1 210 in one year, the expected return on assets will be %. (Round to one decimal place.)