Hello tutor, kindly assist with the mcq questions below. Please provide an explanation for the chosen answers. Thank you

Financial Distress with Costs

Financial Distress in Perfect Capital Markets

ProGrowth Inc. and StableTech Solutions are identical firms except that StableTech is more levered. Both companies will remain in business for one more year. The companies' economists agree that the probability of the continuation of the current expansion is 90% for the next year and the probability of a recession is 10%. If the expansion continues, each firm will be valued at $4.5 million. If a recession occurs, each firm will be valued at $1.9 million. ProGrowth's debt obligation requires the firm to pay $990,000 at the end of the year. StableTech's debt obligation requires the firm to pay $2 million at the end of the year. The discount rate is 14%.

• Assume now ProGrowth Inc. and StableTech Solutions incur $300,000 costs in case of bankruptcy:

1. What is the value today of ProGrowth's debt?

• Round the answer to an integer. For example, type 1,234,568 if the value is $1,234,567.89.

2. What is the value today of ProGrowth's equity?

• Round the answer to a whole number. For example, type 1,234,568 for a $1,234,567.89 value.

3. What is the value today of StableTech's debt?

• Round the answer to a whole number. For example, type 1,234,568 for a $1,234,567.89 value.

4. What is the value today of StableTech's equity?

• Round the answer to a whole number. For example, type 1,234,568 for a $1,234,567.89 value.

5. What is the value today of ProGrowth Inc.?

• Round the answer to a whole number. For example, type 1,234,568 for a $1,234,567.89 value.

6. What is the value today of StableTech Solutions?

• Round the answer to a whole number. For example, type 1,234,568 for a $1,234,567.89 value.