please provide with full working solution. thanks so much for your help.

(a) You are a corporate raider bidding for the sleepy company Zzz, Inc. You think the company is worth somewhere between $2 billion and $10 billion in the hands of the current Zzz management and regard all values in this range as equally likely. The current management knows the actual figure. You also believe that, whatever the value of the company now, in your hands the company will be worth 10% more than that. You want to make a positive expected profit from this deal. You tender a bid, and the current management will accept it if it is more than the actual value of the company in their hands, which is known to them.

(i) Should you bid $6 billion? Why, or why not?

(ii) What is the highest amount you should bid?

(b) You are a collector of Woolworths Lion King Ooshies set. You have the complete set and in addition you have an extra piece of the rare Sunset Simba. You are thinking of selling the Sunset Simba at an auction for the purpose of fundraising for your favourite charity. Answer the following:

(i) What type of auction structure (from English open-outcry, Dutch, first or second price sealedbid varieties) will you choose if buyers are risk-neutral and buyer-beliefs are uncorrelated.

(ii) What type of auction structure will you choose if buyers are risk-averse?

(iii) What type of auction structure should you choose if buyers have correlated beliefs? In the above, provide comprehensive explanations for your answers.