1. PT Industries has debt of $1,450. In Parts a) and b) assume that surplus cash is zero. Parts a), b), and c) are each worth 4 marks. Part d) is worth 4 marks. Answer the following:

c. Assume PT Industries has $500 in surplus cash. If the equity value is $2,650 as in part a), what is the enterprise value?

d. Assume PT Industries has $500 in surplus cash. If the enterprise value is $5,400 as in part b), what is the equity value?