Consider the table below that sets out data on the Carpe Vinum Company's balance sheet (CV Co). Cash Investment project Total assets 10m ? ? Debt Equity Total liabilities Face Value 50m ? ? The investment project has an investment cost of 70m and a present value of x, distributed uniformly between 50m and 200m. CV Co makes the investment decision after it knows the realization of the present value x. The market is risk-neutral and has a discount rate of zero. a. What is the value of the firm, the debt, and the equity with the information given? Assume that no renegotiation of the debt contract is possible. b. Suppose the firm could replace its debt liability with a new debt contract with face value D. What value of D maximizes the value of the debt? What is the value of the debt in this case? Assume that no renegotiation of the debt contract is possible. c. Now suppose the firm could renegotiate the debt contract free of cost after the parties observe the realization value of x. What is the value of the firm in this case? It does not matter to your answer whether the debt has a face value of 50m or face value D. d. Now suppose the firm could renegotiate the debt contract free of cost only before the parties know the realization value of x. What is the value of the firm in this case? Assume that no debt renegotiation can happen after the parties see the realization value of x.