One Shot Inc. will generate a single risky cash flow two years from now. The CF will

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One Shot Inc. will generate a single risky cash flow two years from now. The CF will be either $2,000 (with probability 0.2) or $1,000 (with probability 0.8). The firm has $500 of outstanding debt maturing in two years. What is the value of equity if the cost of capital is 0?

Posted Date: May 16, 2024 07:11 AM

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One Shot Inc. will generate a single risky cash flow two years from now. The CF will

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If the cost of capital is 0 the value of equity can be calculated us... View the full answer

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