Question
Tim Tardashian Company (TTC) suggested that their primary customer demographic should, ... get off your [expletives redacted] and work. Y'all are really lazy. Consequently, many
Tim Tardashian Company (TTC) suggested that their primary customer demographic should, "... get off your [expletives redacted] and work. Y'all are really lazy." Consequently, many customers just became former customers and TTC will remain in business for only one more year. TTC projects a 10 percent probability of generating a total cash flow of $200 million and a 90% probability of generating $50 million. TTC's required debt payment at the end of the year is $80 million. The market value of TTC's outstanding debt is $54 million. The company pays no taxes. What rate of return is promised on the debt of TTC?
Question 29 options:
| 48.1% |
| 29.0% |
| -1.9% |
| 27.0% |
| 42.6% |
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