Need urgent answer and correct answer. The formula list given is also attached. Please need them as soon as possible and only correct ones with proper explanation.

Capital Asset Pricing Model (CAPM) E(R, )= R, + B, E(R. )-R, ] Modigliani and Miller Proposition I (no tax): V1 = Vu Proposition II (no tax): R = R. +(R. -R. ) Proposition I (with corporate tax): V, = V, + ID Proposition II (with corporate tax): R = R. + (R. - R. [1-I.) Miller (1977) VI =V + 1- (1- 7 1 - I. ) D 1-I2. James, the CEO of an electron ics rm, can invest $8 million in a project that will give a single cash inow of $1 7 million in one year if James chooses to devote his full eortto the project ('wozk"). James's utility from the project is the payoff he receives from its cash now. He has a hobby restoring vintage cars and can choose to spend part of his time on this relaxing activity instead of the project (\"Shirl-r"). It he does this, the project wili give a single cash inow of $12 million in one year. James's disutiiity from giving up his hobby to give his full effort to the project is $3m. Assume James has no personal wealth and the project should be nanced entirely by outside investors. James, and every potential investor in James's project, is riskneutral. The discount rate is zero. a} Suppose James nances the project with outside equity, and the investors believe he will choose to wont. (i) What proportion of equity will they demand? What will be the utility for James if he chooses to wotk? {4 marks} {it} Assume James can choose how much eort he uses for the project aer the finance has been raised. What will his utility be, if he chooses to shirt!) [3 marks) b} Assume now the investors are aware of James's hobby. What proportion of equity wiil they demand? What will James's utility be if he chooses to shirk? {3 marks} o} Suppose James can nance the project with debt. What will be the face value of the debt? What will James's utility be, if he chooses to WONG What wiil it be if he chooses to shirk? {s merits) d} {i} Explain the agency cost of outside equity with reference to your answers to parts (a) to (c) above. {1 so words) (6 marks} {ii} Suggest and briey explain a possible solution to this agency problem, apart from the nancing choice. {3 marks] (Total = 25 marks)