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M&M PIzza Case Study asks the following question: What are the debt and equity claims worth under the alternative scenarios? You may note that the

M&M PIzza Case Study asks the following question:

What are the debt and equity claims worth under the alternative scenarios? You may note that the present value of perpetual cash flow stream is equal to the expected payment divided by the associated required return.

What should I be looking at to explain the answer. Is it the "slice" of the equity?

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