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10) Beachrentals.com has three creditors: a Bank with seniority in the amount of $250, Senior Bond Holders in the amount of $180, and a Steel
10) Beachrentals.com has three creditors: a Bank with seniority in the amount of $250, Senior Bond Holders in the amount of $180, and a Steel Trade Creditor with no priority in the amount of $75. Beachrentals.com has proposed the following two debt restructuring plans. What is the expected value of Plan A to the Bank? Plan A: 60% chance the value of the firm =S780 40% chance the value of the firm = $100 Plan B: 50% chance of the value of the firm = $370 50% chance the value of the firm = $210 A) $230 B) $190 C) $250 D) $780 E) $45
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