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The company has $4,400 debt. The probability of good and bad economy state is 20%, and 80%. (NOT 50%!!) Below is forecasted firm value under

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The company has $4,400 debt. The probability of good and bad economy state is 20%, and 80%. (NOT 50%!!) Below is forecasted firm value under two economies: Firm value Firm value Economy Prob. Low Risk Project High Risk Project Bad 20% $ 4,200 $ 3,800 Good 80% $ 5,200 5,800 Based on predicted firm value under the bad and good economy, please calculate: (note: firm's value equals to a summation of prob. predicted value under each economy) Expected firm value if firm adopts the HIGH risk project (Format and round to whole number, NO decimals,no ".", for example: 12500) Based on predicted firm value under the bad and good economy, please calculate : (note: firm's value equals to a summation of prob. * predicted value under each economy) Expected firm value if firm adopts the HIGH risk project. (Format and round to whole number, NO decimals,no ",", for example: 12500) Expected equity value if firm adopts the HIGH risk project. (Format and round to whole number, NO decimals,no ",", for example: 12500) Expected debt value if firm adopts the HIGH risk project. (Format and round to whole number, NO decimals.no")" for example: 12500)

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