4. Assume a firm (with a market value of $3,000) is planning to undertake a project that requires an initial investment of $1,900. The project is just as risky as the firms existing assets and the firm will finance the project so that it maintains the same capital structure as it currently has. The PV of the project is $2,050 and the NPV is $2,050 - $1,900 = $150. Using the following information, how much money does the firm need to borrow to maintain the same capital structure? (Similar to the example used in class, assume that the firm has no cash, and will therefore finance the entire $1,900 initial investment by borrowing money and/or issuing equity, and that the value of the equity will increase by both the amount of new equity issued and the project NPV after acceptance of the project.)

The following shows the firms current market-value balance sheet (i.e., not including the project):

Assets	$3000	Debt	$600
		Equity	$2400
Total	$3000	Total	$3000

______ 5. Refer back to the facts in the previous problem. How much money does the firm need to raise through a new equity issue to maintain the same capital structure?