Consider a company advancing a project with two scenarios, whose probability is 30% (Unfavorable) and 70% (Favourable). It is necessary to invest at t=1 an additional USD 100 million to promote the project. At t= 2, marketing rights can be sold for USD 600 million in the favorable scenario and USD 200 million in the unfavorable scenario. The company has a preferred debt incurred at t=0 with multiple creditors whose amount is USD 150 million. It is assumed that investors are risk neutral and Rf=0 1. What would be the maximum amount that a non-preferred creditor would be willing to grant (in the unfavorable scenario)? Justify 2. What should happen for a non-preferred creditor to provide the necessary investment at t=1 (in the unfavorable scenario)? Justify 3. Would your answer to the previous questions be different if the preferred creditor were a bank? Justify 4. What type of problem corresponds to the situation raised as a consequence of the conflict of interest between creditors and shareholders? Explain