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Nobody has been able to get these questions correct. please help me ! ! Question 6 : Next period a firm will be worth $
Nobody has been able to get these questions correct. please help me
Question :
Next period a firm will be worth $ with probability, $ with probability, and $ otherwise. The firm has one senior bond outstanding with a face value of $ and one junior bond outstanding with a face value of $ The senior bond has a promised return of The junior bond has a promised return of The firm's required return on assets is What is the expected return on the junior bond? Give your answer in percentage to the nearest correct answer:
Question :
Next period a firm will be worth $ with probability, $ with probability, and $ otherwise. The firm has one senior bond outstanding with a face value of $ and one junior bond outstanding with a face value of $ The senior bond has a promised return of The junior bond has a promised return of The firm's required return on assets is What is the value of the firm? Give your answer in dollars to the nearest $ Correct answer:
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