Question 2 (10 Marks) The Salad Oil Storage (SOS) Company has financed a large part of its facilities with long-term debt. There is a significant risk of default, but the company is not on the ropes yet. Explain a) Why SOS stockholders could lose by investing in a positive NPV project financed by an equity issue? (2 Marks) b) Why SOS stockholders could gain by investing in a negative NPV project financed by cash? (2 Marks) c) Why SOS stockholders could gain from paying out a large cash dividend? (2 Marks) d) How could some or all of the problems noted above been mitigated? (4 Marks)