Rackin Pinion Corporation's assets are currently worth $1, 190. In one year, they will be worth either $1, 150 or $1, 440. The risk-free interest rate is 4 percent. Suppose the company has an outstanding debt issue with a face value of $1,000. a. What is the value of the equity? b-1 What is the value of the debt? b-2 What is the interest rate on the debt? c. Would the value of the equity go up or down if the risk-free rate were 4 percent? Increase Decrease