Steinberg Corporation and Dietrich Corporation are identical firms, except that Dietrich is more levered. Both companies will remain in business for one more year. The companies' economists agree that the probability of the continuation of the current expansion is $70$ percent for the next year, and the probability of a recession is $30$ percent. If the expansion continues, each firm will generate earnings before interest and taxes of $3\mathrm{.}4$ million. If a recession occurs, each firm will generate earnings before interest and taxes of $1\mathrm{.}8$ million at the end of the year. Steinberg's debt obligation requires them to pay $$970,000$ at the end of the year. Dietrichs debt obligation requires the firm to pay $1\mathrm{.}9$ million at the end of the year. Neither firm pays taxes. Assume the discount rate of $12$ percent.

$1.$ What are the current market values of Steinbergs equity and debt? $($Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to the nearest whole dollar, e$.$g$.,1,234,567.)2.$ What are the current market values of Dietrich's equity and debt? $($Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to the nearest whole dollar,e$.$g$.,1,234,567.)$ b$.$ Steinberg's CEO recently stated that Steinberg's value should be higher than Dietrich's since the firm has less debt and, therefore, less bankruptcy risk. Do you agree or disagree with this statement?