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You are an entrepreneur starting a biotechnology firm. If your research is successful, the technology can be sold for $29 million. If your research is

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You are an entrepreneur starting a biotechnology firm. If your research is successful, the technology can be sold for $29 million. If your research is unsuccessful it will be worth nothing to fund your research, you need to raise $5.4 million. Investors are willing to provide you with $5.4 million in initial capital in exchange for 40% of the unlevered equity in the firm a. What is the total market value of the firm without loverage? b. Suppose you borrow $0.5 milion. According to MM, what fraction of the firm's equity will you need to sell to raise the additional 54.9 million you need? c. What is the value of your share of the firm's equity in casos (a) and (b)? a. What is the total market value of the firm without loverago? The market value without leverage is million, (Round to one decimal place.)

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