Please show step by step for any problems that require calculations. Thanks!

a. Explain the challenge competition plays in creating value in the long run and what this means for the firm that wishes to create value in the long run.

b. Changes in accounting techniques that decrease reported profits will decrease the value of a firm. Is this statement true or false? Provide support for your answer.

c. Bigger Brewing Co. is a U.S.-based company that is undergoing a leveraged buyout with a projected capital structure of 70 percent debt in the near term. There is a projected loan repayment schedule, with the goal of having a capital structure of 50 percent debt in three years. Based on this information, the best methodology to value this firm would be the enterprise discounted cash flow model. Is this statement true or false? Provide support for your answer.

d. Capital restructuring is one of the external opportunities that create value. If you were a CFO, what would be the main considerations in setting up the target capital structure policy for your firm? Discuss two possible considerations.