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. 4c) (6 points) Suppose the company has 1M shares outstanding. Compute the change in the price of the shares if the company issues equity in the scenarios described in parts (a) and (b) and explain the difference. Hint: The companys value today should reflect its expected value, which is the average of the value of the company if its cost-cutting was successful and the value if its cost-cutting was unsuccessful, account for its optimal financing choices in each case. You have already computed these values in parts (a) and (b)