Rackin Pinion Corporation's assets are currently worth $1,220. In one year, they will be worth either $1,180 or $1,470. The risk-free interest rate is 6 percent. Suppose the company has an outstanding debt issue with a face value of $1,000. a.What is the value of the equity? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Equity value b-1. What is the value of the debt? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Debt value b-2. What is the interest rate on the debt? (Do not round intermediate calculations and enter your answer as a percent rounded to the nearest whole number, e.g., 32.) Interest rate % c. Would the value of the equity go up or down if the risk-free rate were 8 percent? Decrease Increase