suppose company ABC will be worth either 250M or 150M depending on weather the economy is strong (with 60% probablity or weak with 40% probablity in 1 year) The current risk free rate is 4% and the cost of equity of he company is 100% equity financed is 15%. Assume perfect world

a) What is maximum amount ABC can borrow.

b) what would be the company's debt to value ratio if ABC borrowed the amount you found in a.

c) interest rate

d) debt to value