investment, then there is a 40% probability that the present value of future cash flows for this firm equals (state M), and a 20% probability that the present value of future cash flows for this firm equals 5200M (state G). a) Your firm is thinking about raising the capital needed for this new investment project by issuing $50M. in equity. What percentage of the firm has to be sold to raise the $50M ? (6 points) b) Suppose that the manager privately knows that state B is the true state for this firm. What is the NPV of financing in state B ? ( 3 points) c) Suppose that the manager privately knows that state M is the true state for this firm. What is the NPV of financing in state M ? ( 3 points) ) Suppore that the examayne prevately seowes that state 6 is the true state for thia from. Wbat is the Now of formeing in state G? (B peintel e) The public does not know the true state for this firm, but knows that the manager only isues equity If the NPV of financing is greater than tero. Suppose that the manager announces that he will isue equity to finance the new investment opportunity What percentage of the firm has to be sold to taise the S50M? (5 points) investment, then there is a 40% probability that the present value of future cash flows for this firm equals (state M), and a 20% probability that the present value of future cash flows for this firm equals 5200M (state G). a) Your firm is thinking about raising the capital needed for this new investment project by issuing $50M. in equity. What percentage of the firm has to be sold to raise the $50M ? (6 points) b) Suppose that the manager privately knows that state B is the true state for this firm. What is the NPV of financing in state B ? ( 3 points) c) Suppose that the manager privately knows that state M is the true state for this firm. What is the NPV of financing in state M ? ( 3 points) ) Suppore that the examayne prevately seowes that state 6 is the true state for thia from. Wbat is the Now of formeing in state G? (B peintel e) The public does not know the true state for this firm, but knows that the manager only isues equity If the NPV of financing is greater than tero. Suppose that the manager announces that he will isue equity to finance the new investment opportunity What percentage of the firm has to be sold to taise the S50M? (5 points)