Question: Problem 1 Intro A firm has equity worth $ 1 0 0 and debt worth $ 3 0 . The equity is expected to payoff

Problem 1
Intro
A firm has equity worth $100 and debt worth $30. The equity is expected to payoff one year later either $150 with 65% probability or $120 with 35% probability. The cost of debt is 8%.
Part 1
Attempt 110 for 10 pts.
Problem 1 Intro A firm has equity worth $100 and debt

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