Question: QUESTION 2b [ 5 Marks] If the bank requires a repayment of debt (D), what is the payoff to the bank based on the

QUESTION 2b [ 5 Marks] If the bank requires a repayment of

QUESTION 2b [ 5 Marks] If the bank requires a repayment of debt (D), what is the payoff to the bank based on the value of the firm's assets? Using the diagram below, describe the bank's payoff depending on the value of D relative to A. Payoff to debt holders Payoff function to the debt holder (the bank) from a loan Assets (A)

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