Suppose Global Real Estate Partners, LTD., in the above problem decided to undertake a riskier project: The
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Suppose Global Real Estate Partners, LTD., in the above problem decided to undertake a riskier project: The value of the firm in a year will be either \($800\) million or \($100\) million, depending on the success of the project. What is the value of the equity? What is the value of the debt? Which project is preferred by bondholders?
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