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At year 1, Daisy Ltd, American company expects CFs of 150000$ from operations in US and 470000 pounds from sales in UK. Daisy has debt

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At year 1, Daisy Ltd, American company expects CFs of 150000$ from operations in US and 470000 pounds from sales in UK. Daisy has debt of 540000$ due in one year. If the company bankrupts, the costs are 70000$. The exchange rates for one pound in one year is expected to be 0.75$ with probability 30%, 0.85$ with probability 40%, 0.90$ with probability 30%. If there are no other cash flows, risk- neutral investors and zero discount rate, find the following: 1) The expected value of the equityholders' and debtholders' stakes 2) The total value of the firm 3) If pound exposure can be hedged with a forward contract at pound-0.84, what is the expected CFs to debt/equityholders, the total value of the firm

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