You are an entrepreneur starting a biotechnology firm. if your research is successful, the technology can be sold for $ 29 million. if your research is unsuccessful, it will be worth nothing. to fund your research, you need to raise $ 5.7 million. investors are willing to provide you with $ 5.7 million in initial capital in exchange for 30 % of the unlevered equity in the firm. a. what is the total market value of the firm without leverage? b. suppose you borrow $ 0.6 million. according to mm, what fraction of the firm's equity will you need to sell to raise the additional $ 5.1 million you need? c. what is the value of your share of the firm's equity in cases (a) and (b)?

Richardson hired j. c. flood company, a plumbing contractor, to correct a stoppage in the sewer line of her house. the plumbing company's 'snake' device, used to clear the line leading to the main sewer, became caught in the underground line. to release it, the company excavated a portion of the sewer line in richardson's backyard. in the process, the company discovered numerous leaks in a rusty, defective water pipe that ran parallel with the sewer line. to meet public regulations, the water pipe, of a type no longer approved for such service, had to be replaced either then or later, when the yard would have to be excavated again. the plumbing company proceeded to repair the water pipe. though richardson inspected the company's work daily and did not express any objection to the extra work involved in replacing the water pipe, she refused to pay any part of the total bill after the company completed the entire operation. j. c. flood company then sued richardson for the costs of labor and material it had furnished. (c) for what, if anything, should richardson be liable? explain."