Question: A new project costs $48 and will generate $0 with a probability of 50% and $100 otherwise. Problem 8 Intro The projects of a firm

A new project costs $48 and will generate $0 with a probability of 50% and $100 otherwise. of 50% and $100 otherwise. Problem 8 Intro The projects of a

Problem 8 Intro The projects of a firm will pay $80 with certainty. The firm has debt with a face value of $100. Ignore the time value of moeny. Part 5 Attempt 1/3 for 10 pts. What is the value of equity if the new project can only be financed with new debt that is more senior than the old debt? 0+ decimals Submit

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