Question: firm can develop the land at on uptront cos rox.tree, and assure there are no taxes a. If the fim chooces sot to deveriop the

firm can develop the land at on uptront cos rox.tree, and assure there are no taxes a. If the fim chooces sot to deveriop the land c. Suppose the smim raises $199 milion form the equay holders to develop the land. If the firm develops the land, what is the value of the firm's equaty today? What is the value of the firm's debt tosay? d. cives your arswer to port (c), would equity holders be willing to provide the 519.9 milion needed to develop the land? a. It the frem cheoces nol to dereice the lans, What is the value of the firris equity today? What is the value of the debt today? II the firm chooses not to develop the tand, the value of the equity is $ milion. (Round to two decimal places.) The value of the dett locky is 1 mitten. (Reund to two decimat places) b. What is the Nipv of derobioping the land? The tapvo doveloping the lans is 5 mition. (Roond to two decimal paces.) toder? If the firt dentlope the lans, the velue of deth is 1 . milion. (Round to two decinal places) A. Wa. Equit hosicen wa not te wiling to accoct the deal because for them it is a negative Nev invertmert. 10. Yes. Equty toiden wil be wilitig to eccept the deas becesse for them it is a portive NPV rrestrent

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