Maggie's Manpower Moving (MMM) is launching a new project. Depending on the success of the project next year MMM will be worth $90 million, $150 million or $200 million with equal probability. Assume capital markets are perfect and the appropriate discount rate for the project is 4%. MMM also has debt (zero-coupon) with a face value of $130 million due next year. What is the current value of MMM debt (round to nearest million)?

Answer rating: 100% (QA)

To calculate the current value of MMMs debt we need t... View the full answer