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Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | Apr 2017 |
| Last Sign in: | 418 Weeks Ago, 6 Days Ago |
| Questions Answered: | 3232 |
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MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
Suppose that you are the manager and sole owner of a highly leveraged company. All thedebt will mature in 1 year. If at that time the value of the company is greater than the facevalue of the debt, you will pay off the debt. If the value of the company is less than theface value of the debt, you will declare bankruptcy and the debt holders will own thecompany.(a) Express your position as an option on the value of the company.(b) Express the position of the debt holders in terms of options on the value of thecompany.(c) What can you do to increase the value of your position?
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