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Chapters owns assets that have a 75% probability of having a market value of $550M and a 25% probability that the assets will be worth $200M in one year. The firm will not generate cash flows thereafter. The current risk-free rate is 3% and the discount rate on the assets is 6%. Suppose Chapters has debt due in one year of $150M. If MM holds implying a perfect market, what is the value of Chapter's equity? A.$290.7M B. $287.3M C. $300.0M D. $316.9M Century Aluminum owns assets that have a 70% probability of having a market value of $850M and a 30% probability that the company will default next year. The firm will not generate cash flows thereafter. The current risk- free rate is 5%. Suppose Century has outstanding debt that has a market value today of $500M and is due in one year. The cost of debt is 6.25% and the unlevered cost of equity is 7%. The capital market is perfect, if Century promised to pay its creditors an interest payment $50 next year, what is the value of the assets of the company in the default scenario? A. $500.0 B. $487.5 C. $466.7 D. 531.3