Houston homes has outstanding debt of $78 that is due in one year. given the financial distress costs, debtholders will receive only $62 if the firm does well and $24 if it does poorly. the probability that the firm will do well is 75 percent and the probability that it will do poorly is 25 percent. assuming a discount rate of 9.6 percent, what is the current value of the debt?

Answers

Answer 1

The current value of the debt based on the probability given about Houston homes is $47.90.

How to calculate the current value of debt?

From the information given, the expected payment to debt holders will be:

= ($62 × 75%) + ($24 × 25%)

= $46.50 + $6

= $52.50

The current value of the debt will be:

= 52.50 / (1 + 9.6%)

= 52.50/1.096

= $47.90

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Related Questions

how many moles of carbon dioxide gas occupy a volume of 81.3

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5.42 Is the answer to this question Hope this helps have a good day

Dani was walking home with her parents and noticed an elderly person struggling to open a door. dani decided to open the door for the person, because she knew her parents would praise her behavior. dani's behavior is an example of:

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Answer:

7. none of the above

Compare the boiling points of 1-pentyne and 1-octyne. compare the vapor pressure curves of 1-butene and 1-heptene. explain your reasoning.

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With regards to vapor pressure curves, we can say that 1-butene has higher vapor pressures at lower temperatures than 1-heptene.

How to Interprete Vapour Pressure Curves?

With regards to boiling points, 1-pentyne has a lower boiling point than 1-octyne.  

With regards to vapor pressure curves, we can say that 1-butene has higher vapor pressures at lower temperatures than 1-heptene.

Now, these supposed differences in boiling points and vapor pressures arise due to thedifferences in the chain lengths of the molecules.

Larger molecules have stronger intermolecular forces of attraction than smaller molecules. Thus, more energy is required to move larger molecules into the vapor phase from the liquid state.

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Approximately how much of the energy in the producers of an ecosystem will be available to secondary consumers?

Answers

Answer:

Secondary consumers receive 10% of the energy available at the primary consumer level (1% of the original energy). Tertiary consumers receive 10% of the energy available at the secondary level (0.1% of the original energy).

Explanation:

Given that the molar mass of nacl is 58.44 g/mol, what is the molarity of a solution that contains 87.75 g of nacl in 500. ml of solution? use molarity equals startfraction moles of solute over liters of solution endfraction.. 0.333 m 0.751 m 1.50 m 3.00 m

Answers

The molarity of the solution that contains 87.75 g of NaCl in 500 mL of the solution is 3 M

What is molarity?

This is defined as the mole of solute per unit litre of solution. Mathematically, it can be expressed as:

Molarity = mole / Volume

How to determine the mole of NaCl Mass of NaCl = 87.75 g ofMolar mass of NaCl = 23 + 35.5 = 58.5 g/mol Mole of NaCl =?

Mole = mass / molar mass

Mole of NaCl = 87.75 / 58.5

Mole of NaCl = 1.5 mole

How to determine the molarity Mole of NaCl = 1.5 mole Volume = 500 mL = 500 / 1000 = 0.5 L Molarity =?

Molarity = mole / Volume

Molarity = 1.5 / 0.5

Molarity = 3 M

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Answer:

i think its d

Explanation:

eez nuts

What is the probability that the flight will accommodate all ticketed passengers who show up?

Answers

Answer:

P ( X  50 ) = p ( 45 ) + p ( 46 ) + p ( 47 ) + p ( 48 ) + p ( 49 ) + p ( 50 ) = 0.05 + 0.10 + 0.12 + 0.14 + 0.25 + 0.17 = 0.83

Explanation:

If this scenario continues, what do you think will happen to the populations in the next 100 years? why do you think this might happen?

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What’s the scenario??

Hugo is standing in the top of st. louis' gateway arch

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Did you mean « Hugo is standing in the top of St. Louis' Gateway Arch looking down on the Mississippi River. The angle of depression to the closer bank is 45° and the angle of depression to the farther bank is 18°. The arch is 630 feet tall. »?

classify these salts as acidic, basic, or neutral.

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I’m sorry I didn’t understand the question you were trying to get answered. Please give more details or add pictures and I can try to help you! Thank you.

Identify the values for the function y=cos 4(x-pi)

Answers

The values for the function y= cos 4(x-pi) are;

Amplitude = 1Period = π/2Horizontal (phase) shift = πunits Vertical shift = 0 units

Cosine functions and Properties

It follows from comparison with the traditional cosine function;

Amplitude is usually the coefficient of the cos function and hence is, 1 in this case.

The period, T from the function given is; T =π/2

The horizontal phase shift is obtained by comparison as; pi.

Ultimately, the vertical shift is 0 units as there's no y-intercept.

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The passage suggests that greater transparency in the federal reserve will help workers and create more equitable prosperity for average americans. suppose the democratic party wants to create a statement about helping workers and reducing inequality in their party platform. explain how the ideological perspective of the democratic party would likely affect how it would address these economic issues.

Answers

The ideological perspective of the democratic party would likely bring about the rejecting illegal and corrupt people/nominees.

What is the ideology perspective of the Democratic Party?

The party known to be the Democratic Party of the United States is known to be one that uses  American liberalism.

The party is known to have large centrist, progressive wings, smaller conservative and also small socialist elements.

Note that suppose the democratic party wants to create a statement about helping workers and reducing inequality in their party platform, they have to create one that is centered around American liberalism.

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True or false if a and b are square matrices, then ab =ba,

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yes

Explanation:

it is true because it's the formula of mathematics

It’s a matrices so it is true

Introduction to linear algebra with applications 1st edition solutions

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Answer:

Literally 20 other questions just like these.

Im happy to help but,

Whats your question?

What do you need help on?

I took algebra a while ago so I may be able to help you.

Checking temperatures with a cleaned and sanitized thermometer complies with which haccp principle

Answers

Based on HACCP principles, checking temperatures with a cleaned and sanitized thermometer is in tandem with the fourth HACCP principle (monitoring).

What is HACCP?

HACCP is an abbreviation for Hazard Analysis Critical Control Point and it can be defined as a management system which is used to ensure food safety, specifically through the analysis and control of the following:

Biological, physical, and chemical hazards during raw material production.Procurement and handling of food equipment.Manufacturing, distribution, and consumption of the finished food product.

Generally, the fourth HACCP principle (monitoring) involves checking the temperature of food products by using a cleaned and sanitized thermometer.

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Introduction to linear algebra 4th edition solutions

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Answer:

Whats your question?

What do you need help on?

I took algebra a while ago so I may be able to help you.

Calculus early transcendentals single variable 8th edition solutions

Answers

An example of Calculus early transcendentals single variable 8th edition question is What are function? An example of this work is evaluate (-3)⁴.

What is a function math definition?

A function in mathematics, is known to be a term that connote an expression, rule, or law that tells more about the linkage or the relationship between two or more variable.

The first variable is called  the independent variable and another variable is called the dependent variable. There are other topics under this calculus text book such as exponential functions, etc.

The solution is given in the image attached.

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A blood test shows clumps only in wells containing anti-a and anti-b antibodies. the rhesus test was negative. which is the correct blood type?

Answers

Answer:

AB-

Explanation:

Using a simple interest calculation which situation would be best after one year

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Answer: having $524.85 on a credit card with a 8.4% APR and $790.00 in a savings account at a 4.35% APR

Explanation:

just took quiz and got it right :)

Lesson 30 understand probability concepts answer key

Answers

The term probability is known to be the number of times an event is expected to take place in the long run:

What is Lesson 30 understand probability about?

The lesson centers around probability and this term connote the likelihood of  an event occurring.

Note that an event is known to be an experiment. An outcome is regarded also as one of the possible output of the event. The lesson helps us to know more and solving questions about chances and probability.

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What is the total amount of work required to move an electron through a potential difference of 100 volts?

Answers

move a proton through a potential difference of
100. volts?
(1) 1.60 × 10^–21 J (3) 1.00 × 10^2 J
(2) 1.60 × 10^–17 J (4) 6.25 × 10^20 J

Answer:2)1.6x10^-17 J

Explanation:

Everything looks like a nail, inc. is a manufacturing company that produces hammers. the company faces various fixed and variable costs in the short run. determine which of everything looks like a nail's costs are fixed costs and which are variable costs. assume the company cannot easily adjust the amount of capital that it uses and that salaries are negotiated only once per year.

Answers

Examples of fixed costs include equipment costs and salaries; while variable costs include costs of materials and transportation costs.

What is "cost"?

In a company, costs include all the money that has to be paid for the company to offer a product or service.

What is the difference between a variable cost and a fixed cost?

Variable costs can vary or change depending on the number of units produced; on the other hand, fixed costs are constant.

What are some fixed and variable costs?

Fixed costs:

Equipment cost.Interests on a debt.Salaries.

Variable costs:

Cost of materials such as metal or wood.Transportation and packaging costs.

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Which of the statements are evidence that gases do not always behave ideally?

Answers

Answer:

diffusion

Explanation:

diffusion, state of matter ,osmosis

OCPA-West has significant influence on media about the Army. What are the benefits and drawbacks of this influence?

Answers

Answer:

To disseminate a positive message, the military can provide written information, press releases, briefings, and films.

Explanation:

.

Intensive care units (icus) generally treat the sickest patients in a hospital. icus are often the most expensive department in a hospital because of the specialized equipment and extensive training required to be an icu doctor or nurse. therefore, it is important to use icus as efficiently as possible in a hospital. according to a large-scale study of elderly icu patients, the average length of stay in the icu is days (critical care medicine journal article). assume that this length of stay in the icu has an exponential distribution. do not round intermediate calculations.

Answers

a. Probability that the length of stay in the ICU is one day or less is:0.2614.

b. Probability that the length of stay in the ICU is between two and three days is:0.1426

c. Probability that the length of stay in the ICU is more than five days is:0.2198.

Probability

a. Probabilty of one day or less.

Using this formula

P(X≤1)=1-e^-ux

Since mean is 3.3 the decay parameter is:

u=1/3.3

Hence:

P(X≤1)=1-e^-1/3.3

P(X≤1)=1-e^-0.3030

P(X≤1)=1-0.7385991

P(X≤1)=0.2614

b. Probability of two and three days.

P(X≤2)=1-e^-ux

P(X≤2)=1-e^-2/3.3

P(X≤2)=1-e^-0.60606

P(X≤2)=1-0.54549589

P(X≤2)=0.45450

P(X≤3)=1-e^-ux

P(X≤3)=1-e^-3/3.3

P(X≤3)=1-e^-0.909091

P(X≤3)=1-0.402890

P(X≤3)=0.59711

Hence:

P(2≤X≤3)=0.59711-0.45450

P(2≤X≤3)=0.1426

c. Probability of more than 5 days.

P(X≤5)=e^-ux

P(X≤5)=e^-5/3.3

P(X≤5)=e^-1.515152

P(X≤5)=0.219775

P(X≤5)=0.2198 (Approximately)

Inconclusion the probability that the length of stay in the ICU is one day or less is:0.2614.

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Which change is an unlikely result of destruction of wetlands?

Answers

Answer:

healthy fish populations

Explanation:

i just took the test and get it right

What are the three reasons grasses dominate and trees do not in the grasslands biomes?

Answers

Answer:fire and drought

Explanation: i took the quiz :)

Male and female high school students reported how many hours they worked each week in summer jobs

Answers

Answer:

The correct answer is that the males have a significantly high outlier.

Step-by-step explanation:

If you look at the box plots show the long tails t6hat signify the Q3 outlier.

The climate in northern alaska suddenly changes from a very cold climate to a warm climate. Two species of wolves live in this area. Species x has long fur and doesn't shed to regulate internal temperature. Species y has short fur and sheds to regulate internal temperature. Which species is most likely to survive this climate change?

Answers

Answer:

Both species will survive because they have fur to help maintain constant internal temperatures.

Explanation:

brainly pls

Which mathematical word describes both 27 x and 6 x in the expression 27 x + 6 x ?

Answers

commutative is it i think

Which equation is y = 6x2 + 12x – 10 rewritten in vertex form? y = 6(x + 1)2 – 11 y = 6(x + 1)2 – 10 y = 6(x + 1)2 – 4 y = 6(x + 1)2 – 16

Answers

Which equation is y = 6x2 + 12x – 10 rewritten in vertex form? y = 6(x + 1)2 – 11 y = 6(x + 1)2 – 10 y = 6(x + 1)2 – 4 y = 6(x + 1)2 – 16

Explanation:bc irdk

y = 6(x + 1)2 – 11 y = 6(x + 1)2 – 10 y = 6(x + 1)2 – 4 y = 6(x + 1)2 – 16.

What is Vertex form?

There are many different ways to define an equation. The definition of an equation in algebra is a mathematical statement that demonstrates the equality of two mathematical expressions.

For instance, the equation 3x + 5 = 14 consists of the two equations 3x + 5 and 14, which are separated by the 'equal' sign. Mathematical algebraic equations typically have one or more variables.

Equations are frequently utilized in daily life, but they are most frequently used in science and numerous math applications. For instance, a grocery store can apply an algorithm to determine the price of an item that is 50% discounted.

Therefore, y = 6(x + 1)2 – 11 y = 6(x + 1)2 – 10 y = 6(x + 1)2 – 4 y = 6(x + 1)2 – 16.

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