Answer Choices:

Values: Fat Mouse Dairy Products

Equity Value

A$.)$ $$21\mathrm{.}16$ million

B$.)$ $$20\mathrm{.}04$ million

C$.)$ $$23\mathrm{.}38$ million

D$.)$ $$22\mathrm{.}27$ million

Debt Value

A$.)$ $$9\mathrm{.}96$ million

B$.)$ $$6\mathrm{.}62$ million

C$.)$ $$8\mathrm{.}84$ million

D$.)$ $$7\mathrm{.}73$ million

Debt yield

A$.)9\mathrm{.}65\%$

B$.)9\mathrm{.}93\%$

C$.)9\mathrm{.}19\%$

D$.)9\mathrm{.}84\%$

Goals: Fat Mouse Dairy Products

Equity value at $30\%$ volatility

A$.)$ $$20\mathrm{.}20$ million

B$.)$ $$21\mathrm{.}26$ million

C$.)$ $$19\mathrm{.}13$ million

D$.)$ $$22\mathrm{.}32$ million

Debt value at $30\%$ volatility

A$.)$ $$9\mathrm{.}80$ million

B$.)$ $$10\mathrm{.}87$ million

C$.)$ $$7\mathrm{.}68$ million

D$.)$ $$8\mathrm{.}74$ million

Debt yield at $30\%$ volatility

A$.)6\mathrm{.}68\%$

B$.)6\mathrm{.}81\%$

C$.)6\mathrm{.}41\%$

D$.)6\mathrm{.}55\%$

The value of Fat Mouse's debt will $($decrease or increase$)$

The value of its stock will $($decrease or increase$)$