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Question Completion Status: 1 Question 2 of 30 > >> A Moving to another question will save this response. 1 points Save Answer ABC Corp.

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Question Completion Status: 1 Question 2 of 30 > >> A Moving to another question will save this response. 1 points Save Answer "ABC Corp. is expected to generate a single cash flow in a year. The possible values for the cash flow, depending on the state of the economy, are presented in the table below. The firm wants to borrow $50 and pay that out as a dividend. If it goes bankrupt it will incur $10 in bankruptcy costs. The market interest rate is 0. If debtholders are fully aware of the risks, what kind of promised yield will they negotiate?" Probability CF Strong economy 0.6 $90 Weak economy 0.4 $45 25% 19% 20% 21% 30% 17C la o ENG 6:14 PM 12/21/2021

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