Question: Please help me solve A,B,C. I will leave a thumbs up!! Acort Industries owns assets that will have a(n) 60% probability of having a market

Please help me solve A,B,C. I will leave a thumbs up!!
Please help me solve A,B,C. I will leave a thumbs up!! Acort

Acort Industries owns assets that will have a(n) 60% probability of having a market value of $46 million in one year. There is a 40% chance that the assets will be worth only $16 million. The current risk-free rate is 3%, and Acort's assets have a cost of capital of 6%. a. If Acort is unlevered, what is the current market value of its equity? b. Suppose instead that Acort has debt with a face value of $10 million due in one year. According to M&M, what is the value of Acort's equity in this case? c. What is the expected return of Acort's equity without leverage? What is the expected return of Acort's equity with leverage

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