subject
Business, 08.10.2019 04:20 iiCaxx4668

Good time company is a regional chain department store. it will remain in business for one more year. the probability of a boom year is 70 percent and the probability of a recession is 30 percent. it is projected that the company will generate a total cash flow of $191 million in a boom year and $82 million in a recession. the company's required debt payment at the end of the year is $116 million. the market value of the company’s outstanding debt is $89 million. the company pays no taxes.

a. what payoff do bondholders expect to receive in the event of a recession?
b. what is the promised return on the company's debt?
c. what is the expected return on the company's debt?

ansver
Answers: 2

Other questions on the subject: Business

image
Business, 21.06.2019 21:00, CadenSkinner2003
The table shows the demand and supply schedules for magazines. complete the following sentences. the equilibrium price of a magazine is $ 4 and the equilibrium quantity is 150 magazines a week. price (dollars per magazine) quantity demanded quantity supplied (magazines per week) 3.00 160 138 3.50 155 144 4.00 150 150 4.50 145 156 5.00 140 161 now a fall in the price of a newspaper decreases the quantity demanded by 11 magazines a week at each price. at the original equilibrium price, a occurs. to return to equilibrium, the price of a magazine a. surplus; rises b. shortage; rises c. shortage; falls d. surplus; falls as the market returns to equilibrium, the quantity demanded and the quantity supplied a. decreases; increases b. decreases; decreases c. increases; decreases d. increases; increases the new equilibrium price is $ nothing a magazine.
Answers: 1
image
Business, 22.06.2019 07:30, ingle75
Fill in the missing words to correctly complete each sentence about analyzing a job posting. when reviewing a job posting, it’s important to check theto determine whether it’s worth your time to apply. if the post has been up for a while or it’s already closed, move on to the next position. if it’s still available, take note of when it closes so you’ll know when you mayfrom the company in regard to an interview.
Answers: 1
image
Business, 22.06.2019 12:50, montgomerykarloxc24x
You own 2,200 shares of deltona hardware. the company has stated that it plans on issuing a dividend of $0.42 a share at the end of this year and then issuing a final liquidating dividend of $2.90 a share at the end of next year. your required rate of return on this security is 16 percent. ignoring taxes, what is the value of one share of this stock to you today?
Answers: 1
image
Business, 22.06.2019 18:00, theflash077
Large public water and sewer companies often become monopolies because they benefit from although the company faces high start-up costs, the firm experiences average production costs as it expands and adds more customers. smaller competitors would experience average costs and would be less
Answers: 1
You know the right answer?
Good time company is a regional chain department store. it will remain in business for one more year...

Questions in other subjects:

Konu
Mathematics, 29.01.2021 01:10