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Gagstone Cerporston is about to lounch a new product. Depending on the syecess of the new product, Gladstone may have one of four values next

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Gagstone Cerporston is about to lounch a new product. Depending on the syecess of the new product, Gladstone may have one of four values next year: $155 million, $136 million, 9.4% and 594 minon. These outcontes are 2ssume perfact capial markets. 2. What is tre ental value of Gadsione's equity without levelage? b. What is the intial value of Gladetone's debl? c. What is the yeldeo-maturay of the dobt? What is is expected return? a. Whas is the insal value of Glasstone's equat? What is Gladstone's total value with leverage? 2. What is the intal value of Glasstone's equity without leverage? The ifrial vaive of Giatstonte's equity without leverage is? mition. (Round to two decimal places.) Now suppose Classione tas zero-coupon debt with a $100 millon face value due next year. b. What is the inties value of Gadtuties debt? Tton iratal value of Gladstone's debt is 5 maich. (Round to tro decimal places) c. What is the yelstematily of the debt? What is ts expectid return? The yeist to-matirty is (Round to the neseret ietegef) The exsecid retum is W. (Round to one decimal place.) d. What is the incal vidue of Cladsione's equity? What is Classione's total value with leverage? The intial valve d Gadstone's levered equiy is 1 Rilion. (Round to two decimal pluces.) Gadivones toal vawes weth leverage is: milion. (Round to two decmal places.)

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