Solution of Q16.1

Solution of Q16.1 - 53.57 b 0.38 c 162.5 d 116.07 e Let...

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Sate Prob CF Equity Debt Boom 60% 250 100 150 Recession 40% 100 0 100 Expected value 60 130 PV(Expected value) 53.57 116.07 a.
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Unformatted text preview: 53.57 b. 0.38 c. 162.5 d. 116.07 e. Let X (0.4X+0.6*150)/1.12=108.93 X= 80 f. 20...
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This note was uploaded on 07/30/2011 for the course FINANCE 101 taught by Professor Xxx during the Spring '11 term at HKU.

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