A company raises $500$m in shareholders equity for an R&D project. Has it become richer or poorer? By how much? What is your answer if the company spends half of the funds in the first two years, and the project does not produce results? In the third year, the company uses the remaining funds to acquire a competitor that is overvalued by $25\%.$ But thanks to synergies with this new subsidiary, it is able to improve its earnings by $75$m during this third year. Has it become richer or poorer? By how much?