You are an entrepreneur starting a biotechnology firm. If your research is successful, the technology can be sold for $25 million. If your research is unsuccessful, it will be worth nothing. To fund your research, you need to raise $3.3 million, Investors are willing to provide you with $3.3 million in initial capital in exchange for 45% of the unlevered equity in the firm a. What is the total market value of the firm without leverage? b. Suppose you borrow $0.3 million. According to MM, what fraction of the firm's equity will you need to sell to raise the additional $3.0 million you need? c. What is the value of your share of the firm's equity in cases (a) and (b)? a. What is the total market value of the firm without laverage ? The market value without loverage is $ 7.3 million (Round to one decimal place) b. Suppose you borrow $0.3 million. According to MM, what fraction of the firm's equity will you need to sell to raise the additional $3.0 million you need? The fraction of the firm's equity you will need to sell is % (Round to the nearest whole percentage) Acort Industries owns assets that will have a(n) 75% probability of having a market value of $57 million in one year. There is a 25% chance that the assets will be worth only $27 million. The current risk-free rate is 10%, and Acort's assets have a cost of capital of 20% a. If Acort is unlevered, what is the current market value of its equity? b. Suppose instead that Acort has debt with a face value of $23 million due in one year. According to MM, what is the value of Acorts equity in this case? c. What in the expected retum of Acort's equity without leverage? What is the expected return of Acort's equity with leverago? d. What is the lowest possible realized return of Acort's equity with and without everage? a. If Acort is unlevered, what is the current market value of its equity? The current market value of the unlevered equity is $ million (Round to three decimal places.)