Tasco is a well-established company that sells apples, the value of the assets in place is 100 and it has no debt. The CEO of Tasco is considering entering the pear business. This would represent a net loss of 20 for Tasco but would generate private benefits to the CEO (the value to him of such benefits is 1.5). The CEO initially owns 5% of the company. The discount rate is O and there are no taxes. a) (5 marks] Is it in the CEO's interest to invest in the pear business? Would the answer be different if the CEO owned 50% of the equity? Explain. Suppose the firm does a recapitalisation: it issues debt with face value of 50 and uses the proceeds to buy back shares. Assume that the CEO does not sell any shares in the recapitalisation and that the debt is risk-free. b) (6 marks] Will the CEO invest in the pear business now? Explain. c) (7 marks] What is the minimum value of debt to be issued in the recapitalisation such that the CEO will not invest in the pear business