Problem : Corprate Financing Vader Asymmetric Information. Connider entrepreneur i endowed with a bruises where investment I generates to- chamde revenue equal R will probebility pe and O with probability - pr- The business ben positive expected mei velme: The entrepreneur ber no wealth on the beginning and needs to danace smob investment with a loan from a competitive leader. Both the entrepreneur and the leader are risk-menivel The leader makes zero expected profi on amy lomi. a When in the repayment promised to the leader if project in theceofal! Now, warmme there are two types ofentrepreneurk good, forwhom probabilityofmccem ing web wheipRS I and bad for whom probability of onecem is quick when qR