11 12 13 2. Fenerbahce Soccer Club has $15 million debt outstanding due next year and currently has $8 million cash. Fenerbahce 14 has no other assets. Assume that Fenerbahce can hire a superstar soccer player Ronaldo for $8 million. Ronaldo can 15 generate revenues of $20 million w/ probability 10% or revenues of $2 million w/ 90% probability next year. Do 16 Fenerbahce shareholders hire Ronaldo? Do debtholders of Fenerbahce prefer hiring Ronaldo? Galatasaray Soccer Club 17 has no debt and has $10 million. Will Galatasaray hire Ronaldo? Please show your work. (Assume that discount rate is 18 zero). [15 points] 19 Answer: 20 21 22 23 24 25 26 27 28 Sheet1 +