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The following three questions are each worth 5 points. Briefly explain (in 2 or 3 sentences) why you agree or disagree with the statement in

The following three questions are each worth 5 points. Briefly explain (in 2 or 3 sentences) why you agree or disagree with the statement in italics. 6. A coup has just occurred in a country where a mineral extraction firm operates. The coup has changed the variability of the future profitability of firm, so that the present value of the profits is now expected to be $1 billion. It has debt with a face value of $1.5 billion. The discount rate is zero. The market value of the debt therefore is exactly $1 billion

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