Here is my question, thx!

1. Assume you live in an M&M (Modigliani and Miller) world without taxes. Currently, it is date 0. You own the equity of a company that, starting at date 1, will either (a) generate 300 with certainty every year forever or (b) generate 100 with certainty every year forever. There is a 50% probability that (a) will occur, and a 50% probability that (b) will occur. Today, that is, we don't know the future cash flows, but we will know them with certainty next year. + Assume there is no systematic risk associated with these cash flows and that the risk-free rate is 10% (hint: Ask yourself how these assumptions affect your calculation of the return on equity using the CAPM model). There are 1000 shares outstanding. + a. Suppose the company is 100% equity financed. What is the value of the company's equity? What is the share price