) There are two tech startups in Shenzhen, DigitalX and SpaceY. Both of them are limited liability companies, but they differ in their capital structure. DigitalX is 40% debtfinanced and 60% equity-financed, while SpaceY is 60% debt-financed and 40% equityfinanced. Suppose each company has RMB 10 million of assets. Both firms pay 10% interest rate on their debt. As the Shenzhen government is the main supporter of these startups in this stage, their economic outlook depends on Shenzhen government's fiscal policy. If the government adopts a loose fiscal policy, then both firms make RMB 2 million in a year. If the government adopts a tight fiscal policy, then both make RMB 1 million in a year. The loose fiscal policy scenario happens with probability 80% and the tight fiscal policy scenario happens with probability 20%. i) Recall that a balance sheet has three components, assets, debt, and equity. Write down the values of assets, debts and equity (in millions) under "Asset", "Debt", and "Equity" respectively on DigitalX's balance sheet. Write down the values of assets, debts and equity under "Asset", "Debt", and "Equity" respectively on SpaceY's balance sheet. ii) If you are considering to invest in DigitalX by buying a share of the firm, what is the expected return on equity? What is the standard deviation of the yearly returns? iii) If you are considering to invest in SpaceY by buying a share of the firm, what is the expected return on equity? What is the standard deviation of the yearly returns? iv)How does the capital structure in a firm affect the expected return on equity and its riskiness?