Intro An all-equity firm has the following expected values in one year, depending on the state of the economy: State Probability Expected firm value Recession 0.5 50 Boom 0.5 230 The firm's cost of capital is 21%. Assume perfect capital markets. Attempt 1/10 for 10 pts. Part 1 What is the firm's value now? 0+ decimals Submit Part 2 Attempt 1/10 for 10 pts. From now on, assume that you want to borrow $60 for one year to buy the firm. The expected rate of return on the loan is 13%. What is the face value of the bond? 0+ decimals Submit Attempt 1/10 for 10 pts. Part 3 What is the expected rate of return on the levered equity? 3+ decimals Submit Attempt 1/10 for 10 pts. Part 4 What is the weighted average cost of capital now? 3+ decimals Submit