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 Ralanre cheot item Market val (\$m) Reta 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: a. Bad outcome for the company since the NPV of buying the trucks was $0.3m. b. Unchanged market value of equity. c. $0.5m decrease in the market value of cash to zero. d. $0.30 decrease in the stock price to $0.45 assuming that there are 1 million shares. e. $0.2m increase in the market value of trucks to $0.7m