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2. In the game between the manager and the stockholders of Ross (1977), the future value of the firm is random and uniformly distributed on
2. In the game between the manager and the stockholders of Ross (1977), the future value of the firm is random and uniformly distributed on the interval 10, d, where t is the upper bound of V. The manager knows the value of t, but the stockholders do not, and this is the asymmetry of information. In observing the debt level F chosen by the manager, the stockholders think that the value of t is given by o[F]. In the lecture on the model of Ross, it was shown that o[ F] has the following form: o[F] = 4 ALF+ 02. Yo Compute the debt level F that maximizes the manager's expected payoff
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