The face value of the debt of an insolvent company is equal to SEK $1000.$ The liquidation value of the company is SEK $850.$ If the company were allowed to continue its activity, two scenarios are possible. The present value of the company$$s future cash$-$flows in the $$good$$ and the $$bad$$ scenario is estimated in SEK $2000$ and SEK $400,$ respectively. Both scenarios have probability $0\mathrm{.}5.$ All investors are risk$-$neutral and the market rate of return on capital is equal to $0\%.$

$3\mathrm{.}1.$ Would the market value of the company be maximised if the company were allowed to continue its activity or if it were immediately liquidated?

$3\mathrm{.}2.$ Suppose that the outcome of the bankruptcy procedure is decided by the creditors; will the company be allowed to continue its activity, or will it be immediately liquidated?

$3\mathrm{.}3.$ Consider a possible recapitalisation arrangement in which the company would become fully equity$-$financed, and the current creditors would exchange the debt securities they hold with a participation of x$\%$ in the company$$s equity. What is the lowest value of x such that the creditors would allow the company to continue its activity? Dear Expert, do well to add comprehensive notes and calculations to the problems for me okay. Thank you