TL company has expected earnings of $75 in one year if it does well and $ 25 if it does poorly. the firm has outstanding debt of $50 that is due in one year. however, given the financial distress costs, the debtholders will only receive $40 in one year if the firm does well ans $15 if it does poorly. there is a 60% chance the firm will do well and a 40% chance that it will do porrly. what is the current value of the debt if the interest rate on bonds is 8%?

A) $27.78

B) $30.00

C) $26.67

D) $27.50

E) $28.40