Consider the junior gold mining firm Pure Gold, which expects to extract 5,000 ounces of gold next year, and pay out a liquidating dividend. The firm has zero-coupon debt with a face value of $3.57 million, it pays a 40% corporate tax rate on net income above its $ 4 million depreciation expense and its interest expense equal to the face value minus the present value of the debt, and it has extraction costs of $400 per ounce. Management estimates the annual expected return, volatility, and skewness for gold to be 10%, 20%, and 0 respectively. The current one-year forward price of gold is $1, 260 per ounce and the convenience yield on gold is currently 0. The risk-free rate is 5% per year (CCR). (Assume all revenues and costs occur at the end of the year.) What is the hedged value of the firm? What is the hedged value of the debt? What is the hedged value of the equity? What is the current spot price of gold? Construct a 1-period binomial model for the gold price next year. What is the unhedged value of the debt? What is the unhedged value of the firm? What is the unhedged value of the equity