(Case 5-3) With Berrys put option in place, does Cherry have sufficient equity investment at risk to permit the entity to finance its activities without additional subordinated financial support?

Multiple Choice

• Yes, equity investment at risk is $80 million.

• Yes, equity investment at risk is $100 million.

• No, equity investment at risk is $20 million.

• No, equity investment at risk is $80 million.