1. The CCM bidding group plans to increase the amount of debt in Hertz capital structure from $9.7 billion to $12.5 billion. Is Hertz a good candidate for a high level of debt? Why or why not? I am looking for a qualitative answer based on the tradeoffs that we discussed in class. An ideal answer will provide arguments that suggest that Hertz might be a good candidate as well as arguments that suggest that Hertz may not be a good candidate. Then you should form your opinion. 2. According to the case, what are the anticipated sources of value from the proposed LBO transaction? 3. As for the proposed ABS financing, the case mentions that because Hertz will use its car fleet as collateral, Hertz will be able to borrow at a low interest rate of 4.5%. If we were in a perfect capital market, do you think the low interest rate on the ABS debt would create value? Explain.