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1. A corporation has assets of $200 million and owes $80 million to a bank. Given limited li- ability, what is the maximum amount of

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1. A corporation has assets of $200 million and owes $80 million to a bank. Given limited li- ability, what is the maximum amount of loss to the corporation's shareholders from tort claims? What is the maximum loss to the bank from tort claims against the corpora- tion? Explain how the bank is providing im- plicit liability insurance to the corporation's shareholders. Also explain how the bank can charge a premium for this insurance

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