4.Given below are eight statements. You must answer all eight. Some are True/False/PartiallyTrue and some require an analysis.Please answer the question and explain your answer since it is the argument that matters; but, be succinct.Each question is worth 4 points for a total of 32 points.

a) When you acquire a firm where their activities are hard for you to monitor, you have a much better chance of creating value since there are smaller negative synergies in these types of deals.Please answer True/False/PartiallyTrue. Explain.

b) Your firm announces that you will issue $50 million in debt on top of the $200 million in debt you now have to purchase shares.Your stock (5 million shares) is trading at $80 a share.If this announcement was a surprise, and investors believe you and that the all-in relative tax advantage of debt is 10%, fill in the following table with the values you expect for each item: