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Zeytin Company is facing financial distress and has to pay $38 million at t=1 to repay a loan. Without a change in policy, Zeytin's assets

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Zeytin Company is facing financial distress and has to pay $38 million at t=1 to repay a loan. Without a change in policy, Zeytin's assets will only be worth $30 million and the company will have to default on its debt. There is a new policy, however, that Zeytin can adopt. With the new policy, there is a 50% chance of success and 50% chance of failure. If successful, Zeytin will be able to pay its $38 million debt in full; if not successful, it will go into default. Fill in the blanks in the following table to create a case consistent with the over-investment problem for Zeytin. Ignore taxes. And note that the correct answer is not unique

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