Inter Planes (IP) used to be a relatively successful airline operating in Mexico. The company, led by CEO Yakemekeda Poko, is unfortunately in trouble as a result of the ongoing pandemic and IP's large leverage ratio. In terms of its financials, the company's assets (market value) are literally zero. Yet, the company has debt outstanding (nominal value of the debt) for $1,250M with Banorte, which is due in one month. Imagine that unexpectedly, IP receives cash from the Mexican tax authorities for $500M. Such windfall (unexpected cash payment) was the result of an old lawsuit with the tax authorities, which investors assumed would not yield a positive outcome. Given this new outcome, the company has $ 500M in cash and as previously stated, it is the only asset of the business. CEO Yakemekeda Poko has realized that there is little he can do to save his company even with the new $500M. Yet, as he is surfing the web in his office, he watched on YouTube a commercial from Caliente.mx featuring upcoming soccer games from the European Champions League. "If Sherriff beat Real Madrid last week, I am confident I can make money betting at Caliente.mx in their new game against Inter Milan, this October 19th", indicates the main character in the commercial. "Sheriff will save IP" thought Mr. Poko. He checked that if he correctly predicted the score of the soccer match between Sheriff and Inter of Milan, he could multiply by 4 the value of his bet. The risk, however, was that he would lose everything. He estimated that he could get the score correctly with 20% probability. In this problem, assume that the relevant discount rate for all projects and maturities is zero and that there are no market frictions related to financing. What would be the change in the equity value of IP in $ Mafter the decision to bet the entire cash balance is made public but before it is implemented? Elija su respuesta... What would be the change in the asset value of IP in $M(in market values) after the decision is made public but before it is implemented? Elija su respuesta... How much money would Banorte be willing to spend in lawyers or other means directed at stopping Yakemekeda Poko's bet? Elija su respuesta