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Assume markets are perfect and that Geralt lnc . has assets that will generate eash flows of either $ 1 0 0 million or S

Assume markets are perfect and that Geralt lnc. has assets that will generate eash flows of either $100 million or S300 million a year from today,
4. What are the possible payolts to Geralt's investors if it has only issued equity and no debt?
b. What are the possible payolls to Geralt's investors if Geralt has issued debt that matues for slou million a year from today in addition to its equity?
c. What are the possible payofls to Geralt"s investors if Gerali has issued debt that matures for $150 million a year from today in addition to its equity?
d. What conclusions can we draw about the rates of return on the bonds in parts "b" and "e"?
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