I keep getting the debt value wrong, but I know for a fact that my equity value is correct. please tell me how to get the correct debt value

= Homework: Homework 8 Question 10, P16-23 (similar to) Part 7 of 11 HW Score: 96.06%, 9.61 of 10 points Points: 0.61 of 1 Save Petron Corporation's management team is meeting to decide on a new corporate strategy. There are four options, each with a different probability of success and total firm value in the event of success, as shown here: B. Assume that for each strategy, firm value is zero in the event of failure. Also, suppose Petron Corp. must pay a 25% tax rate on the amount of the final payoff that is paid to equily holders. It pays no tax on payments to, or capital raised from, det holders. a. Which strategy will Petron choose with no debt? Which will it choose with a face value of S11 million. $33 million, or $55 million in debt? (Assume management maximizes the value of equity, and in the case of ties, will choose the safer strategy.) b. Given your answer to (a), show that the total combined value of Petron's equity and debt is maximized with a face value of $55 million in debt. c. Show that if Petron has $33 million in debt outstanding, shareholders can gain by increasing the face value of debt to $55 million, even though this will reduce the total value of the firm, d. Show that if Petron has $55 million in debt outstanding, shareholders will lose by buying back debt to reduce the face value of debt to 533 million, even though that will increase the total value of the firm. O B. The firm will choose strategy D when D= $0 million, C when D= $11 million, D when D= $33 million, and C when D= $55 million. c. The firm will choose strategy C when D=$0 million, C when D= $11 million, D when D=$33 million, and D when D=$55 million. OD. The firm will choose strategy D when D=$0 million, C when D=$11 million, C when D=$33 million, and D when D=$55 million. b. Given your answer to (a), show that the total combined value of Petron's equity and debt is maximized with a face value of $55 million in debt. Calculate the total value of the firm: (Round to two decimal places.) Debt Face Value $0 Debt Value S 0.00 Data table Equity Value 42.74 Firm Value S S 42.74 (Click on the following icon in order to copy its contents into a spreadsheel.) ( Strategy (Round to two decimal places.) Debt Face Value Probability of Success Firm Value if Successful in $ million) 96% 55 $11 11 36.63 85% 66 74% 77 D 63% 88 Debt Value S Equity Value Firm Value S 47,63 Print Done Help me solve this View an example Get more help Ir all Check answer = Homework: Homework 8 Question 10, P16-23 (similar to) Part 7 of 11 HW Score: 96.06%, 9.61 of 10 points Points: 0.61 of 1 Save Petron Corporation's management team is meeting to decide on a new corporate strategy. There are four options, each with a different probability of success and total firm value in the event of success, as shown here: B. Assume that for each strategy, firm value is zero in the event of failure. Also, suppose Petron Corp. must pay a 25% tax rate on the amount of the final payoff that is paid to equily holders. It pays no tax on payments to, or capital raised from, det holders. a. Which strategy will Petron choose with no debt? Which will it choose with a face value of S11 million. $33 million, or $55 million in debt? (Assume management maximizes the value of equity, and in the case of ties, will choose the safer strategy.) b. Given your answer to (a), show that the total combined value of Petron's equity and debt is maximized with a face value of $55 million in debt. c. Show that if Petron has $33 million in debt outstanding, shareholders can gain by increasing the face value of debt to $55 million, even though this will reduce the total value of the firm, d. Show that if Petron has $55 million in debt outstanding, shareholders will lose by buying back debt to reduce the face value of debt to 533 million, even though that will increase the total value of the firm. O B. The firm will choose strategy D when D= $0 million, C when D= $11 million, D when D= $33 million, and C when D= $55 million. c. The firm will choose strategy C when D=$0 million, C when D= $11 million, D when D=$33 million, and D when D=$55 million. OD. The firm will choose strategy D when D=$0 million, C when D=$11 million, C when D=$33 million, and D when D=$55 million. b. Given your answer to (a), show that the total combined value of Petron's equity and debt is maximized with a face value of $55 million in debt. Calculate the total value of the firm: (Round to two decimal places.) Debt Face Value $0 Debt Value S 0.00 Data table Equity Value 42.74 Firm Value S S 42.74 (Click on the following icon in order to copy its contents into a spreadsheel.) ( Strategy (Round to two decimal places.) Debt Face Value Probability of Success Firm Value if Successful in $ million) 96% 55 $11 11 36.63 85% 66 74% 77 D 63% 88 Debt Value S Equity Value Firm Value S 47,63 Print Done Help me solve this View an example Get more help Ir all Check