16. Agency costs (S17-2) The possible payoffs from Ms. Cranes projects (see Example 17.2) have not changed

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16. Agency costs (S17-2) The possible payoffs from Ms. Crane’s projects (see Example 17.2) have not changed but there is now a 40% chance that project 2 will pay off $24 and a 60% chance that it will pay off $0.

a. Recalculate the expected payoffs to the bank and Ms. Crane if the bank lends the present value of $10. Which project would Ms. Crane undertake?

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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Question Posted: Jul 31, 2024 08:02 AM

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16. Agency costs (S17-2) The possible payoffs from Ms. Cranes projects (see Example 17.2) have not changed

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Principles Of Corporate Finance

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