Case Scenario PART A (40 Marks) Fox Ltd is a majority shareholder of Rabbit Ltd. Fox Ltd is a company that produces lms and television shows. It also owns a media streaming business that broadcasts Fox Ltd.'s movies and television shows. On 31 December 2020, Fox Ltd transferred its entire media streaming assets and share capital to Rabbit Ltd. As part of this transaction, Rabbit Ltd acquired $100 million in debt. Rabbit Ltd also acquired an additional media streaming business, incurring $1 million of debt. Fox Ltd. did not guarantee this debt. Several months after the transfer of assets and share capital, Rabbit Ltd issued ordinary shares in an initial public offering, raising nearly $1 billion in cash and reducing Fox Ltd.'s ownership interest in Rabbit Ltd to 41%. The remaining 59% of Rabbit Ltd.'s voting interest is widely held. Rabbit Ltd has entered into broadcast contracts with Fox Ltd, pursuant to which Rabbit Ltd must purchase 90% of their television shows from Fox Ltd. Fox Ltd. determines all payment terms and conditions. The