Now assume that the firm has a new investment project. It requires additional financing of 30 and the firm has no excess cash available. If the firm invests in this project, the cash flows next period will increase by 40 for sure. In other words, if the firm invests in the project, total cash flows will be either 200 or 120 with equal probability c. The manager asks the debtholders to waive the covenant so that the company could issue debt pari passu, ie, new senior debt will share the cash flows with the existing debt in case of default in proportion to each debt component's face value. What would the value of old debt, new debt and equity be if such a debt financing of the new project occurred? Will the existing debtholders agree to waive the covenant in this specific way? Will there be investors willing to raise new pari passu debt of 30 to finance this project? Now assume that the firm has a new investment project. It requires additional financing of 30 and the firm has no excess cash available. If the firm invests in this project, the cash flows next period will increase by 40 for sure. In other words, if the firm invests in the project, total cash flows will be either 200 or 120 with equal probability c. The manager asks the debtholders to waive the covenant so that the company could issue debt pari passu, ie, new senior debt will share the cash flows with the existing debt in case of default in proportion to each debt component's face value. What would the value of old debt, new debt and equity be if such a debt financing of the new project occurred? Will the existing debtholders agree to waive the covenant in this specific way? Will there be investors willing to raise new pari passu debt of 30 to finance this project