Petr.on corporation's management team is meeting to decide on a new corporate strategy. There are 4 options, each with a different probability of success and total firm value in the event of success, as shown here. Probability of success, A 90% B 76% C 62% D 48%. Firm value if successful (in millions) A 54 B 63 C 72 D 81. Assume that for each strategy, firm value is zero in the event of failure. Also suppose Petron Corporation pay a 25% tax rate on the amount of the final payoff that is paid to equity holders.(A) Assume management pays no tax on payments to, or capital raised from, debt holders(maximizes the value of equity, and in case of ties will choose the strategy. b. Given your answer to (a) show that total combined value of Petron's equity and debts is maximized with a face value of 30 milllion in debt. C. show that if Petron has a 30 million in debt outstanding, shareholders can gain by increasing the face value of debt to 52 million, even though this will reduce the total value of the firm. D. Show that if Petron has 52 million in debt outstanding shareholders will lose by buying back debt to reduce the face value of debt to 30 million, even though that will decrease the total value of the firm.