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. Selected Company Details Market value ($m) Item Beta Cash asset 0.5 0 Truck asset 0.5 2 Loan liabilities 0.25 0.1 Equity funding ? ? The firm then pays $0.5m cash for trucks that are actually worth $0.7m 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. Good outcome for the company since the NPV of buying the trucks was $0.2m. O b. $0.2m increase in the market value of equity to $0.95m but no change in the book value of equity. O c. $0.7m increase in the market value of trucks to $1.2m but only a $0.5m increase to the book value of trucks to $1m. O d. $0.5m decrease in the market and book value of cash to zero. O e. $0.70 increase in the stock price to $0.95 assuming that there are 1 million shares