Steinberg Corporation and Dietrich Corporation are identical firms except that Dietric more levered. Both companies will remain in business for one more year. companies' economists agree that the probability of the continuation of the curr expansion is 70 percent for the next year and the probability of a recession is percent. If the expansion continues, each firm will generate earnings before interest a taxes (EBIT) of $4.3 million. If a recession occurs, each firm will generate earnings befc interest and taxes (EBIT) of $1.7 million. Steinberg's debt obligation requires the firm pay $970,000 at the end of the year. Dietrich's debt obligation requires the firm to p- $1.8 million at the end of the year. Neither firm pays taxes. Assume a discount rate of percent. 0-1. What is the value today of Steinberg's debt and equity? (Do not round intermediat calculations and enter your answers in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) a- What is the value today of Dietrich's debt and equity? (Do not round intermediate 2. calculations and enter your answers in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) b. Steinberg's CEO recently stated that Steinberg's value should be higher than Dietrich's because the firm has less debt and therefore less bankruptcy risk. Do you agree or disagree with this statement? a-1. Steinberg equity value Steinberg debt value a-2. Dietrich equity value Dietrich debt value b. Risk of bankruptcy affect a firm's value