Question 6 [3 + 3+3+3 = 12 marks] ACA Ltd owns assets that have an 80% probability of being worth $50 million in one year and a 20% probability of being worth only $20 million. The current riskfree rate is 5% and ACA Ltd's cost of capital is 10%. a) If ACA Ltd is unlevered, what is the current market value of its equity? b) Suppose instead that ACA Ltd has riskless debt worth $20 million due in one year's time. According to Modigliani and Miller, what is the value of ACA Ltd's equity in this case? Show all calculations. c) Calculate the expected return on ACA Ltds equity without any leverage. d) Calculate the expected return of ACA Ltd's equity with leverage