2.2. (15 points, 3 points each) Maxwell Inc. is has 500 (thousand dollar) worth of assets. The firm has just finished d three new products that have not been subject to market testing yet. The following ta the possible firm value (i.e. total value of assets) within one year and the associated p for each product. Assume discount rate = 0 for simplicity. Product Possible outcomes (firm value) Probability A 900 0.5 100 0.5 B 800 0.6 200 0.4 C 700 0.7 300 0.3 (a) Calculate the expected firm value for each product following the example belo product generates the highest expected firm value? Product Possible outcomes (firm value) Probability Expected firm val A 900 0.5 100 0.5 B 800 0.6 200 0.4 C 700 0.7 300 0.3 (b) If Maxwell currently has zero debt. Which product would be preferred by shareholders? (Hint: shareholders prefer the product that generates the highest expected equity valu the worksheet on Nov. 19th when calculating expected equity value) (c) If Maxwell currently has 280 (thousand dollar) outstanding debt due within one ye product would be preferred by Maxwell's shareholders? (d) If Maxwell currently has 350 (thousand dollar) outstanding debt due within one ye product would be preferred by Maxwell's shareholders