You are an entrepreneur starting a biotechnology firm. If your research is successful, the technology can be sold for $ 24million. If your research is unsuccessful, it will be worth nothing. To fund your research, you need to raise $4.8million. Investors are willing to provide you with $4.8million in initial capital in exchange for 50 %of the unlevered equity in the firm.a. What is the total market value of the firm without leverage?b. Suppose you borrow $0.5million. According to MM, what fraction of the firm's equity will you need to sell to raise the additional $4.3million 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 leverage?The market value is $million.(Round to one decimal place.)

b. Suppose you borrow $0.5million. According to MM, what fraction of the firm's equity will you need to sell to raise the additional $4.3million you need?You will need to sell %.(Round to the nearest integer.)

c. What is the value of your share of the firm's equity in cases (a)and (b)?Case (a)is $million.(Round to one decimal place.)Case (b)is $million.(Round to one decimal place.)