Your goal is to find debt and equity values $($in dollars$)$ for two companies: Steinberg company and Dietrich company. The required return is $14$ percent for both companies.Both companies do not pay taxes on their income. Imagine a one$-$year time line for each company. In other words, Year $1$ will be the last one. It is uncertain what the next year will look like for the two companies. It will depend on the economy: it may be expanding $(90$ percent likely scenario$)$ or it may be falling into recession $(10$ percent likely scenario$).$ Here's what will happen under each scenario for each company:If expansion takes place $---$ the earnings before interest and taxes will equal $$4\mathrm{.}5$ million. If recession takes place $---$ the earnings before interest and taxes will equal $$1\mathrm{.}9$ million.What is also known is that, in Year $1,$ Steinberg's creditors will expect to collect $$990,000,$ and Dietrich's creditors will expect to collect $$2$ million. a$-1.$Calculate the current values of debt and equity for Steinberg company. $($Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to the nearest whole number, e$.$g$.,1,234,567.)$a$-2.$Now, what about the Dietrich company? $($Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to the nearest whole number, e$.$g$.,1,234,567.)$b$.$"The total value of Steinberg should exceed the total value of Dietrich because Steinberg has a lower amount of debt, and therefore has a lower chance of bankruptcy." Do you agree or disagree with this?a$-1.$Steinberg equity value$=$Steinberg debt value$=$a$-2.$Dietrich equity value$=$Dietrich debt value$=$b$.$Risk of bankruptcy affect a firm's valuE$=$