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please solve parts a b c clearly and correctly and take a clear photo of the solution providing all necessary explanation and calculations 3. (10

please solve parts a b c clearly and correctly and take a clear photo of the solution providing all necessary explanation and calculations
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3. (10 points) Ralston Enterprises has assets that will have a market value in one year as follows: That is, there is a 1% chance the assets will be worth $70 million, a 6% chance the assets will be worth $80 million, and so on. Ralston's assets have a cost of capital of 10%. (a) Find the value of Ralston if it is an all-equity financed firm. (b) Now suppose that Ralston has debt due of $60 million in one year. What is the probability of Ralston's bankruptcy? What is the value of Ralston's equity if the risk-free rate is 2% ? What is the price of one Ralston's share if there are 100 million shares outstanding? (c) What is the expected return of Ralston's equity without leverage? What is the expected return of Ralston's equity with leverage? What is the lowest possible realized return of Ralston's equity with and without leverage

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