Need help with part B.

Problem 24-8 Equity as an Option (L04] Buckeye Industries 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 $1,150. Urban Meyer, the CEO, believes that the assets in the company will be worth either $980 or $1,440 in a year. The going rate on one-year T-bills is 7 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.) Answer is complete and correct. Value of equity $ a 223.93 926.07 Value of debt Suppose the company can reconfigure its existing assets in such a way that the value in a year will be $860 or $1,660. 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.) Answer is not complete. Value of equity