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A regional chain department store will remain in business for one more yeac. The probability of a boom year is 60 percerit and the probability

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A regional chain department store will remain in business for one more yeac. The probability of a boom year is 60 percerit and the probability of a recession is 40 percent. It is projected that the company will generate a total cash flow of $190 million in a boom year and $81 million in a recession. The company's required debt payment at the end of the year is $115 million. The market value of the company's outstanding debt is 588 million. The coenpary pays no taxes. What payoff do bondholders expect to receive in the event of a recession? 581 milion Sea milition $115 million $146 mition $190 milition

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