Suppose that Double-R's bonds have a face value of $40. Its current market value balance sheet is as follows: Assets Net working capital Fixed assets Total assets $20 12 $32 Liabilities and Equity Bonds outstanding $26 Common stock 6 Total liabilities and $32 shareholders' equity Who would gain or lose from the following manoeuvres? a. Double-R pays a $10 cash dividend Stockholders would (Click to select) Bondholders would (Click to select) b. Double-R halts operations, sells its fixed assets for $7, and converts net working-capital into $20 cash It invests its $27 in Treasury bills. Stockholders would (Click to select) Bordholders would (Click to select) G. Double-Rencounters an investment opportunity requiring a $10 initial investment with NPV = $0. It borrows $10 to finance the project by issuing more bonds with the same security, seniority, and so on. as the existing bonds Stockholders would (Click to select) Original bordholders would (Click to select) d. Double-R linances the investment opportunity in part (c) by issuing more common stock Original stockholders would Click to select) Establishment Industries borrows $600 million at an interest rate of 8%. It expects to maintain this debt level into the far future. Establishment will pay tax at an offective rate of 37% What is the present value of interest tax shields? (Round your answer to the nearest cent.) Present value of interest tax shields million References