Jaguar Inc. will generate next year $250B if demand is high for its products and $100B if demand is low. Each scenario is equally likely. The company is liquidated for $0 after the payoffs are realized so no cash flows is expected after liquidation. Assume there are no taxes or costs of financial distress. Jaguar's beta of assets is 1, risk premium is 4% and risk-free rate is 2%. Currently, the firm has a risk-free zero-coupon bond with a face value of $100 due at the end of the year. 

a.) What is the market value of the firm? What is the market value of debt? What is the market value of equity? 

Jaguar Inc. wants to issue pari passu zero-coupon debt to raise $50 and use the proceeds to pay a one- time dividend. Assume that the cost of capital for the old debt and the new debt is 3%. 

b.) What is the face value of the new debt? 

c.) Do equity holders gain or lose from this transaction?