Company X is currently all-equity financed and has no cash on hand. The company has assets in place and a single investment project available. The value of the assets in place depends on whether a recent cost-cutting initiative at the company was successful or not. Assets in place are worth $16M if the initiative was successful and $12M if it was unsuccessful. The CEO of the company knows whether the cost-cutting initiative was successful or not, but investors in the market do not. Investors believe that there is a 50% chance that it was successful and a 50% chance that it was unsuccessful. The project available to the company requires investing $8M today and will generate future cash flows with a present value of $12M (so the NPV of the project is $4M). The market is aware of the existence of the project as well as its cost and payoff. 4a) (7 points) Suppose that you, as a CEO, care only about maximizing the value of current shareholders claims. You have the following choices: i) Issue debt to raise $8M and invest in the project. If the company issues debt, it will incur $8M of financial distress costs, even if the company does not actually default. ii) Issue equity to raise $8M and invest in the project. iii) Turn down the investment