A levered firm has only 2 assets on its balance sheet with the below market values and CAPM betas. The risk free rate is 3% pa and the market risk premium is 5% pa. Assume that the CAPM is correct and all assets are fairly priced. Balance Sheet Market Values and Betas Market value ($m) Balance sheet item Cash asset Truck assets 0.5 0.5 Loan liabilities 0.25 0.1 Equity funding ? ? The firm then pays $0.5m cash for trucks that are actually worth $0.2m on the market. Assume that the beta and yield on the existing loan liabilities are unchanged compared to before. All figures are given to 6 decimal places. Which of the following statements is NOT correct? This event led to a: Select one: O a. Bad outcome for the company since the NPV of buying the trucks was -$0.3m. O b. Unchanged market and book value of equity. O c $0.2m increase in the market value of trucks to $0.7m and a $0.5m increase to the book value of trucks to $1m, assuming the accountant doesn't write-down the value yet. O d. $0.5m decrease in the market and book value of cash to zero. Oe. $0.30 decrease in the stock price to $0.45 assuming that there are 1 million shares. Beta 0 2