Problem 8 You are given the following information about a company: i) The company currently has 80 million in assets. ii) In one year a company will either have 100 million in assets with probability 0.6 or 60 million in assets with probability 0.4. iii) The company has 70 million in debt. iv) The cost of debt capital is rp = 4%. v) The cost of equity capital is r = 12%. vi) The bankruptcy costs are 15 million in case of a bankruptcy. Page 2 of 3 ACTS 4302. SP 2020. HOMEWORK 8. Copyright Natalia A. Humphreys, 2020 Calculate the difference between the unlevered and levered value of the company.