Question: I keep getting the expected return wrong in part C please help Mid States Company is a regional chain department store. It will remain in

I keep getting the expected return wrong in part "C" please help

Mid States Company is a regional chain department store. It will remain in business for one more year. The probability of a boom year is 80 percent and the probability of a recession is 20 percent. It is projected that the company will generate a total cash flow of $199 million in a boom year and $90 million in a recession. The company's required debt payment at the end of the year is $124 million. The market value of the company's outstanding debt is $97 million. The company pays no taxes.

a.What payoff do bondholders expect to receive in the event of a recession?(Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g. 1,234,567.)

Payoff$90000000

90000000 Correct

b.What is the promised return on the company's debt?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Promised return27.83

27.83 Correct

%

c.What is the expected return on the company's debt?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Expected return22

22 Incorrect

%

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