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 $150 million $133 million $85 milion, and 584 million. These outcomes are all equally likely, and this risk is diversiflable. Suppose the risk free interest rate is 5% and that in the event of default 30% of the value of Gladstone's assets will be lost to bankruptcy costs (Ignore all other market imperfections, such as taxes.) a. What is the initial value of Gladstone's equity without leverage? Now suppose Gladstone has zero-coupon debt with a $100 million face value que next year b. What is the 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? Suppose Gladstone has 10 million shares outstanding and no debt at the start of the year, e. If Gladstone does not issue debt, what is its share price? 1. If Gladstone issues debt of S100 million due next year and uses the proceeds to repurchase shares, what wil its share price be? Why does your answer differ from that in part (e)? a. What is the initial value of Gladstone's equity without leverage? The initial value of Gladstone's equity without everage is $millon. (Round to two decimal places.) Enter your answer in the answer box and then click Check