"A firm is expected to generate a single risky cash flow in one year. The CF will be either $90 (with probability 0.7) or $30 (with probability 0.3). All investors are risk neutral. The interest rate is 0. If the firm decides to borrow $50 and pay the amount as a dividend to shareholders, how much will be the promised return to creditors? Assume that, if bankruptcy happens, the firm will have to pay $5 to lawyers."

66.0%

21.4%

50.0%

75.0%

33.3%