Entrepreneur has an investment project that will give him a random rate of return r between the current period ( t = 0) and next period (t = 1). The entrepreneur has $100,000 of his/her own cash to invest but is raising additional funds through the sale of stocks (equity) and bonds to investors. The entrepreneur promises to pay 7% to bondholders. Suppose the entrepreneur raises $250,000 in the sale of stock and $750,000 in the sale of bonds. The entrepreneur invests his/her own funds together with the proceeds from the stock and bond sale into the risky investment project. At t = 1 the entrepreneur distributes bond and equity payments and the project is complete.

a)Lets say the entrepreneur is not doing well and his investment project what he made is a-20% rate return.Find the bond payment to bondholders t=1?

b)Lets say the entrepreneur is doing really well and his investment project what he made making 40% rate return.Calculate Equity payment t=1 to equity holders(without entrepreneur)

c)Lets say that project making 40% rate return.Find rate return to the person(entrepreneur) own assets.