1. Harry Styles & co. has a senior creditor that is owed $100 immediately. Harry Styles & co is seeking to borrow $50 from a junior creditor to stock its inventory of bad music. After the inventory restocking, the business will have $200 in EBIT, and has promised to repay the junior creditor by pledging 40% of its EBIT. What is the junior creditors net payoff from making this loan?

   		$40
   		$90
   		$-10
   		$-40