DWT Inc has $80 million in debt and $60 million in equity(stock). The debt matures in one year and has a 10% interest rate, so the company is promising to payback $88 million to its debt holders one year from now.

Can you please answer d and e briefly

And can you please write done the math solution to b and c

The company is considering two possible investments, each of which will require an upfront cost of $140 million. Each investment will last for one year and the cash flow from each investment depends on the strength of the overall economy. There is a 30% chance that the economy will be weak and 70% chance it will be strong. Here are the expected cash flows (all dollars are in millions) from the two investments Cash flow in one year if The economy is weak Cash flow in one year if the economy is strong Expected Cash flow $155.00 $155.00 Investment A Investment B $120.00x.302 26 $ 50.00X-20 1S $170.00% 70:1 $200.00 ,70 140 Assume that if DWT Inc. doesn't have enough funds to pay off its debtholders one year from now, then it will declare bankruptcy. If bankruptcy is declared, the debtholders will receive all available funds and the stockholders will receive nothing. Which project is more risky? Briefly explain why. a) b) If the company invest in Investment A. What is the expected cash flow to the c) If the company invest in Investment B. What is the expected cash flow to the d) Would the debtholders prefer that the company's managers select Project A or e) Explain why the company's managers acting on behalf of the stockholders might firms' debtholders? What is the expected payoff to the firm's stockholders? firms' debtholders? What is the expected payoff to the firm's stockholders? Project B? Briefly explain your reason. select the project that has greater risk