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If the bank requires a repayment of debt (D), what is the payoff to the bank based on the value of the firm's assets? Using

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If the bank requires a repayment of debt (D), what is the payoff to the bank based on the value of the firm's assets? Using the diagram below describe the payoff to the bank depending on the value of D relative to A. Payoff function to the debt holder (the bank) from a loan Assets (A) Payoff to debt holders 0 If the bank requires a repayment of debt (D), what is the payoff to the bank based on the value of the firm's assets? Using the diagram below describe the payoff to the bank depending on the value of D relative to A. Payoff function to the debt holder (the bank) from a loan Assets (A) Payoff to debt holders 0

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