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The table below shows the forecast cash flow information of Good Time Inc. for the next year. The required debt payment in the next year

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The table below shows the forecast cash flow information of Good Time Inc. for the next year. The required debt payment in the next year is $88 million, with the current market value of $60 million. The company pays no tax. If you invest in the corporate debt of Good Time Inc. today, what is your expected return on this investment? Cash flow in the next year Economy Probability Amount Boom 0.6 5148 million Recession 0.4 561 million 2.939 18.774 10.29% 28.67%

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