Duffy was just hired as CrO of Dog Food Inc, (DFD), which lias no debt on its balance sheet. He also forecats that the firm is expected to pay 5700 mullionyear in taces and is expected to have a constant 20% tax rate. Asuming bo persenal takes, if buffy were to inve $75 millios in perpetaal debt at 7%6, but this would generafe an expected present value of - $1 million in finsacial distress costs, what is the tatal present value of the tax shield and financial distress costs? $14mil $9 mil $4mil $15mil $5.25mil The difference between a futures contract to buy an asset and a call option contract. to buy the same asset is that ... A) an investor would have to purchase or pay a premium for a futures contract, whereas the investor would simply sign onto the call option contract with no premium payment required. B) the asset will be bought in the future with a futures contract, but with an options contract the asset purchase is done in the present time period. C) with a futures contract, the buyer pays an up-front deposit that goes into the seller's account, whereas with a call option contract, both the buyer and the seller must deposit money into their respective accounts. D) the futures contract results in an obligation on both the long and short parties to the contract. whereas the call option contract results in an obligation only for the short party to the contract. E) the futures contract results in an obligation on both the long and short parties to the contract. Whereas the call option contract results in an obligation only for the long party co the contract