Gladstone Corporation is about to launch a new product. Depending on the success of the new product, Gladstone may have one of four values next year: $ 152 million, $ 139 million, $ 93 million, and $ 82 million. These outcomes are all equally likely, and this risk is diversifiable. Gladstone will not make any payouts to investors during the year. Suppose the risk-free interest rate is 4.9 % and assume perfect capital markets.

a. What is the initial value of Gladstone's equity without leverage? The initial value of Gladstone's equity without leverage is $ nothing million. (Round to two decimal places.) Now suppose Gladstone has zero-coupon debt with a $ 100 million face value due next year. b. What is the initial value of Gladstone's debt? The initial value of Gladstone's debt is $ nothing million. (Round to two decimal places.) c. What is the yield-to-maturity of the debt? What is its expected return? The yield-to-maturity is nothing%. (Round to the nearest integer.) The expected return is nothing%. (Round to one decimal place.) d. What is the initial value of Gladstone's equity? What is Gladstone's total value with leverage? The initial value of Gladstone's levered equity is $ nothing million. (Round to two decimal places.) Gladstone's total value with leverage is $ nothing million. (Round to two decimal places.)