In a reverse stock split the: a. number of shares outstanding decreases b. number of shares outstanding increases C. firm buys back existing shares of stock on the open market The MK-TVmall debtholders are promised payments of $35 if the firm does well but will receive only $20 if the firm does poorly. The probability for the firm to do well and poorly are equally likely. Bondholders are willing to pay $25 to buy the bonds today. The promised return to the bondholders is approximately: a. 40.0% b. 10.0% c. 2.9%