Up amp; Down Industries doesn't have any taxes to pay and has $348 million in assets, currently financed only with equity.

Up & Down Industries doesn't have any taxes to pay and has $348 million in assets, currently financed only with equity. The equity is worth $11 per share with 8 million shares outstanding, and book value of equity is equal to market value of equity. Assume that the firm's expected values for EBIT depend upon which state of the economy occurs this year, with the possible values of EBIT and their associated probabilities as follows: