You are an entrepreneur starting a biotechnology firm. If your research is successful, the technology can be sold for $$32$

million. If your research is unsuccessful, it will be worth nothing. To fund your research, you need to raise $$4\mathrm{.}6$ million.

Investors are willing to provide you with $$4\mathrm{.}6$ 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\mathrm{.}6$ million. According to MM$,$ what fraction of the firm's equity will you need to sell to raise the

additional $$4\mathrm{.}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 leverage?

The market value without leverage is $ million. $($Round to one decimal place.$)$