Q 9. (7) Consider the following two-period, two-state world: Assume that there are no taxes. Firm Gamma has a discount debt whose maturity value is $70. a. Find the values of the debt, equity, and the firm. b. If the firm unexpectedly changes its operating policies such that XD=$35 and Xp=$160, what will be the value of the debt? What will be the value of the equity? Of the firm? c. This change does not appear to be desirable to the bondholders and to the firm as a whole. Explain what the security holders can do to protect their interests. And briefly explain how