Use the following information when answering questions 6 - 10:

IndTeX's cyclically dependent company value is expected to be 80, 95, 135 or 150 in one year. The four outcomes, which are mutually exclusive, are estimated to occur with the same probability. Because investors' systematic risk is assumed to be completely eliminated due to diversification, a risk-free interest rate of 5% is used as the capital return requirement. In the event of bankruptcy, the value of the company's assets at the end of the year will be reduced by 25%. No other imperfections in the capital market are assumed to affect IndTeX's company value one year from today. Assume a one-year time horizon when answering questions 6 - 10 below .

Exercise 6 What is the market value of IndTeX as a debt free company today? Enter the amount in millions with two decimal places, e.g. 89.95.

Exercise 7 Assume that IndTeX issues debt at face value of 100. The amount includes accrued interest when the debt is to be repaid in one year. What is the market value of IndTeX's debt today? Enter the amount in millions with two decimal places, e.g. 60.55.

Exercise 8 What are the market's yield to maturity requirements for IndTeX's debt? Enter the amount as a percentage with two decimal places, e.g. 13.55.

Exercise 9 What is the market value of IndTeX's equity today? Enter the amount in millions with two decimal places, e.g. 75.25.

Exercise 10 What is the market value of the IndTeX debt company today? Enter the amount in millions with two decimal places, e.g. 135.80.