C. Rubyist Techologies' assets are currently valued at a market value of 45 million while it holds a 50 million loan due at the end of the year. The management is currently considering a new business strategy. If the new strategy succeeds, the total market value of the company will increase to 60 million. Alternatively, if the new strategy fails then the company will have a market value of 20 million. Suppose that these two scenarios are equally likely. REQUIRED: i. What are the expected payoffs to the debt and equity holders if the management decides to switch to the new strategy? What would be equity holders and debt holders' preferences regarding decision-making for the new strategy? [5 marks] ii. Describe the economic concept that is illustrated in the situation above? [5 marks]