Question 24 (4 points) Good Time Company is a regional chain department store. It will remain in business for one more year. The probability of a boom year is 60 percent and the probability of a recession is 40 percent. It is projected that the company will generate a total cash flow of $250 million in a boom year and $100 million in a recession. The company's required debt payment at the end of the year is $ 150 million. The market value of the company's outstanding debt is $108.93 million. The company pays no taxes. Assume a discount rate of 12 percent. What is the promised return on the company's debt? 12.00% 60.00% 19.34% 40.00% 37.70% Question 23 (4 points) Good Time Company is a regional chain department store. It will remain in business for one more year. The probability of a boom year is 60 percent and the probability of a recession is 40 percent. It is projected that the company will generate a total cash flow of $250 million in a boom year and $100 million in a recession. The company's required debt payment at the end of the year is $ 150 million. The market value of the company's outstanding debt is $108.93 million. The company pays no taxes. Assume a discount rate of 12 percent. What payoff do bondholders expect to receive in the event of a recession? $ 100 million $ 130 million $ 150 million $ 350 million $ 250 million Question 22 (4 points) What is/are the indirect cost(s) of equity financing? Payments to new investors Potential bankruptcy and financial distress costs Pecking order Shirking and company perquisites All of the above