Equilibrant Industries is composed entirely of equity and is valued at $1.5 million. Durst Co. has $400,000 worth of debt costing 9% that becomes due next year with interest. Both firms compete in the same market, and next year's expected cash flows for both firms are $300,000 with 50% probability and $3.15 million with 50% probability. What is the expected cash flow of both firms, ignoring taxes and bankruptcy costs? What is the expected equity return for Equilibrant? How much debt is due at the end of the year for Durst? What is the discounted value of Durst's debt? What is the expected return on its equity, assuming that Durst is valued comparably to Equilibrant?