Buckeye Industries has a bond issue with a face value of $1,000 that is coming due in one year. The value of Buckeye's assets is currently $1,230. Luke Fickell, the CEO, believes that the assets in the firm will be worth either $920 or $1,440 in a year. The going rate on one-year T-bills is 6 percent.

a-1What is the value of Buckeye's equity?(Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Value of equity$a-2What is the value of the debt?(Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Value of debt$Suppose Buckeye can reconfigure its existing assets in such a way that the value in a year will be $940 or $1,740.

b-1If the current value of the assets is unchanged, what is the value of Buckeye's equity?(Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Value of equity$