suppose you borrow 30000 million when financing a gym that has a cost 250000 million. you expect to generate cash flow of 18000 million at the end of the year if demand is weak, 78000 million if demand is as expected and 686000 million if demand is strong. the current risk-free interest rate is 6% (risk of debt) and there's a 10% risk premium for the risk of the assets.

a. what should the value of the equity be?

b. what is the expected return of equity?

c.what would be the return of equity if the demand is strong?

d. what would be the return of equity if the demand is weak?