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Intro The projects of a firm will pay $60 with certainty. The firm has debt with a face value of $80. Ignore the time value
Intro The projects of a firm will pay $60 with certainty. The firm has debt with a face value of $80. Ignore the time value of moeny. | Attempt 3/3 for 6 pts. Part 1 What is the value of equity? 0+ decimals Submit Part 2 - Attempt 1/3 for 10 pts. A new project costs $22 and will generate $0 with a probability of 50% and $50 otherwise. What is the NPV of the project? 0+ decimals Submit Part 3 | Attempt 1/3 for 10 pts. What is the value of equity if the new project can only be financed with new equity? 0+ decimals Submit Part 4 | Attempt 2/2 for 8 pts. If the new project can only be financed with new equity, who should vote in favor of the project? Check all that apply: Existing shareholders Creditors Submit Part 5 |* Attempt 1/3 for 10 pts. What is the value of equity if the new project can only be financed with new debt that is more senior than the old debt? O+ decimals Submit Part 6 - Attempt 1/2 for 10 pts. If the new project can only be financed with new debt that is more senior than the old debt, who should vote in favor of the project? Check all that apply: Existing creditors Shareholders Submit
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