Fawn Craft Supply expects to generate a cash flow of $83,000 next year if the economy booms and $61,000 if it does not. The probability of a boom is 20 percent. The firm has debt of $78,000 that is due in one year and has a current market value of $70,600. The firm plans to close after this coming year. The current promised pretax return on debt is __________ percent, and the expected pretax return on debt is __________ percent. Multiple Choice

7.34; 1.76

10.48; 1.76

10.48; 8.78

9.49; 8.78

9.49; 3.14