Gladstone Corporation is about to launch a new product. Depending on the sucess of the new product, Gladstone may have one of four values next year: $150M, $135M, $95M, or $80M. These outcomes are all equally likely, and the risk is diversifiable. Gladstone will not make any payouts to investors during the year. Suppose the risk-free intrest rate is 5% and assume perfect capital markets. a. What is the initial value of Gladstone's equity without leverage? Now suppose Gladstone has zero-coupon debt with a $100M face value due next year. b. What is initial value of Gladstone's debt? c. What is the yield to maturity of the debt? What is its expected return? d. What is the initial value of Gladstone's equity? What is Gladstone's total value with leverage?