Need ASAP. Finance Major

Suppose there are no taxes. Firm ABC has nodebt, and firm XYZ has debt of $6,000

on which it pays interest of 10% each year. Both companies have identical projects that generate free cash flows of $6,200 or $6,300 each year. After paying any interest ondebt, both companies use all remaining free cash flows to pay dividends each year.

a. In the tablebelow, fill in the debt payments for each firm and the dividend payments the equity holders of each firm will receive given each of the two possible levels of free cash flows.

b. Suppose you hold 10% of the equity of ABC. What is another portfolio you could hold that would provide the same cashflows?

c. Suppose you hold 10% of the equity of XYZ. If you can borrow at 10%, what is an alternative strategy that would provide the same cashflows?

In the tablebelow, fill in the debt payments for each firm and the dividend payments the equity holders of each firm will receive given each of the two possible levels of free cash flows. (Round all answers to the nearestdollar.)

If you hold 10% of the equity ofABC, another portfolio you could hold that would provide the same cash flows wouldbe: (Select from highlighted thedrop-down menus and round to the nearestinteger.)

Sell or Buy ___% of XYZ or ABC debt, and buy or sell ____% of XYZ OR ABC equity

If you hold 10% of the equity of XYZ and can borrow at the same terms asXYZ, an alternative strategy that would provide the same cash flows wouldbe: (Select from highlighted thedrop-down menus and round to the nearestinteger.)

Lend or borrow and equal amount to ___% of ABC OR XYZ debt and buy or sell ____% of XYZ or ABC

equity