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Good Time Company is a regional chain department store. It will remain in business for one more year. The probability of a boom year is 56 percent and the probability of a recession is 44 percent. It is projected that the company will generate a total cash flow of \$ 211 million in a boom year and \$ 82 million in a recession. The company's required debt payment at the end of the year is \$ 122 million. The market value of the company's outstanding debt is \$ 92 million. The company pays no taxes. Requirement 1: What payoff do bondholders expect to receive in the event of a recession? (Do not include the dollar sign (\$). Enter your answer in dollars, not millions of dollars. (e.g., 1,234,567)) What payoff do bondholders expect to receive in the event of a recession? (Do not include the dollar sign (\$). Enter your answer in dollars, not millions of dollars. (e.g., 1,234,567)) Expected payoff \$ Requirement 2: Requirement 2: What is the promised return on the company's debt? (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16)) What is the promised return on the company's debt? (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16)) Promised return % Requirement 3: Requirement 3: What is the expected return on the company's debt? (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16)) What is the expected return on the company's debt? (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16)) Expected return %
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