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Use the information for the evestion(s) beiow. Monsters incorporated (Mi) is teady to taunch a new product Depending upon tho succoss of this peoduct, Mi

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Use the information for the evestion(s) beiow. Monsters incorporated (Mi) is teady to taunch a new product Depending upon tho succoss of this peoduct, Mi will hawe a value of ether $100milion,$150 mifion, or $191 milion, with each outcame being equaly likely. The cash foos are urelatod to the stste of the economy (i o, risk tom the projoct is diversfabto) so that the propect has a beta of 0 and a cost of capial equal to the risk- froe rate, Mhich is curenty 5\%. Assume that the capial mackels ze pedect. Astume that in the evont of del3ut 20 ef of the value of Mrs assets will be lost in barkrupley costs and suppose that Mi has zero - coupon dett with a 5125 millon tace value due noxt year. The yiold to mahing of Mrs debt is dosest to. A. 12.60% . 500% 'c. 15259% D. 13.25%

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