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if you couod answer b,c, and d Acort Industries owns assets that will have acn) 75% probability of having a market value of $59 million

image text in transcribed if you couod answer b,c, and d
Acort Industries owns assets that will have acn) 75% probability of having a market value of $59 million in one year. There is a 25% chance that the assets wil be worth only $29 million. The current risk-free rate is 6%, and Acort's assets have a cost of capital of 12%. a. If Acort is unlevered, what is the current market value of its equity? b. Suppose instead that Acort has debt with a face value of S24 million due in one year. According to MM, what is the value of Acort's equity in this case? c. What is the expected return of Acort's equity without leverage? What is the expected retum of Acorts equity with leverage? d. What is the lowest possible realized return of Acort's equity with and without everage? a. It Acort is unlevered, what is the current market value of its equity The current market value of the unlevered equity is $ 45.982 million (Round to three decimal places) b. Suppose instead that Acort has debt with a face value of $24 million due in one year. According to MM, what is the value of Acort's equity in the case? According to MM, the current market value of the levered equity is million (Round to flee decimal places.)

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