A start-up, founded by Jean and 100% owned by him, wants to launch a research and development program that costs 2 million euros. If it manages to file a patent, it can sell it for 30 million euros. Otherwise, the company will be worthless. Investors are willing to invest 2 million euros in exchange for 50% of the shares of the non-indebted company.

A) has What is the total market value of the company?

B). If the company borrows 1 million euros, what percentage of equity will it have to sell to complete the financing of the project?

C). How much are John's shares in the previous two situations worth?