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CoursHeroTranscribedText: A negotiator proposes: The firm issues new equity to fund the project. Creditors agree on a 20% write down from $35m to $28m. Calculate

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CoursHeroTranscribedText: A negotiator proposes: The firm issues new equity to fund the project. Creditors agree on a 20% write down from $35m to $28m. Calculate payoffs in t=1 for creditors and shareholders. Calculate the value in t=0 for creditors and shareholders. Will shareholders and creditors accept

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