Good Time Company is a regional chain department store. It will remain in business for

one more year. The probability of a boom year is $70$ percent and the probability of a

recession is $30$ percent. It is projected that the company will generate a total cash flow

of $$187$ million in a boom year and $$78$ million in a recession. The company's required

debt payment at the end of the year is $$112$ million. The market value of the company's

outstanding debt is $$85$ million. The company pays no taxes.

a$.$ What payoff do bondholders expect to receive in the event of a recession? $($Do not

round intermediate calculations and enter your answer in dollars, not millions of

dollars, rounded to the nearest whole number, e$.$g$.,1,234,567.)$

b$.$ What is the promised return on the company's debt? $($Do not round intermediate

calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,$

$32\mathrm{.}16.)$

c$.$ What is the expected return on the company's debt? $($Do not round intermediate

calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,$

$32\mathrm{.}16.)$