Hema Corp. is an all-equity firm with a current market value of $1,110 million (i.e., $1.11 billion), and will be worth $999 million or $1,554 million in one year. The risk-free interest rate is 5%. Suppose Hema Corp. issues zero-coupon, one-year debt with a face value of $1,166 million, and uses the proceeds to pay a special dividend to shareholders. Assuming perfect capital markets, use the binomial model to answer the following: a. What are the payoffs of the firm's debt in one year? b. What is the value of the debt today? c. What is the yield on the debt? d. Using Modigliani-Miller, what is the value of Hema's equity before the dividend is paid? What is the value of equity just after the dividend is paid? e. Show that the ex-dividend value of Hema's equity is consistent with the binomial model. What is the A of the equity, when viewed as a call option on the firm's assets? a. What are the payofts of the firm's debt in one year? The payoffs of the firm's debt in one year will be either integer.) million (if the firm does well) or $ million (the firm does poorly and defaults). (Round to the nearest b. What is the value of the debt today? The value of the debt today is $ million. (Round to the nearest integer.) c. What is the yield on the debt? The yield of the debt is %. (Round to two decimal places.) d. Using Modigliani-Miller, what is the value of Hema's equity before the dividend is paid? What is the value of equity just after the dividend is paid? Using Modigliani-Miller, the value of Hema's equity before the dividend is paid is $ million, while the value of equity just after the dividend is paid is $ million. (Round to the nearest integer.) e. Show that the ex-dividend value of Hema's equity is consistent with the binomial model. What is the A of the equity, when viewed as a call option on the firm's assets? The delta (A) of the equity is which yields a value of the equity of $ million. (Round delta to four decimal places and equity value to the nearest integer.)