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Zymase is a biotech startup that has recently been struggling and getting close to financial distress. Researchers must choose one of three different strategies. The

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Zymase is a biotech startup that has recently been struggling and getting close to financial distress. Researchers must choose one of three different strategies. The possible payoffs (after tax) and their likelihoods for each strategy are shown below. Strategy A is certain (i.e., only one possible payoff), while Strategies B and each have two possible outcomes. Strategy Probability Payoff (million) Probability Payoff (million) 100% $85 $150 50% SO 10% $350 90% $0 Which of the following is the best answer? B 50% O A. Stockholders will prefer the safest strategy, A, regardless of the firm's debt level. OB. Stockholders are more likely to prefer Strategy Cit Zymase has a low debt level, OC. Stockholders are more likely to prefer Strategy C if Zymase has a high debt level. OD. Debt level does not affect the preferences of stockholders, because they are looking for the highest NPV

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