Consider that Rylen Corporation is a mid$-$sized manufacturing firm. It is planning to introduce a new product $$Dirt$-$Buster$$ in the market this year. Based on the possibility of being successful with the $$Dirt$-$Buster$,$ Rylen is expecting to have one of the four values of the firm next year: $$150$ million, $$135$ million, $$95$ million, or $$80$ million. These outcomes are considered to be equally likely. Rylen$$s management thinks that this risk is diversifiable. The risk$-$free interest rate is $5\%.$ Furthermore, in the event of default, $25\%$ of the value of Rylen$$s assets will be lost due to facing bankruptcy costs. Please ignore all other market imperfections $($for example, taxes$).$ a$.$ Calculate the current value of Rylen$$s equity without leverage. $[1$ mark$]$ Now consider Rylen has a zero$-$coupon debt with a $$100$ million face value and it is due next year. b$.$ What is the current value of Rylen$$s debt? $[2$ marks$]$ c$.$ What is Rylen$$s current total value with leverage? $[1$ mark$]$