Closter, Inc., has a bond issue with a face value of $1,000 that is coming due in one year. The value of the company's assets is currently $1,210. Ashok Vora, the CEO, believes that the assets in the company will be worth either $940 or $1,460 in a year. The going rate on one-year T-bills is 3 percent.

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

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

Suppose the company can reconfigure its existing assets in such a way that the value in a year will be $920 or $1,720.

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