With this info:

$25 M bond due in one year. Expansion costs $9M financed with equity due to covenants prohibiting issuance of debt. Low economic growth, probability 30% w/o expansion- $20 M, w/expansion $24M. Normal economic growth, probability 50%, w/o expansion $24M, w/expansion $45M. High economic growth, probability 20%, w/o expansion $41M, w/expansion $53M

How do I figure expected value of the company's debt in one year w and w/o expansion?

Are you a troll? You've now posted this FIVE TIMES, minutes apart - once since I answered your LAST post.

I have deleted all of your other posts, if you post this same question again I will merely ban you from the site.

Judy has tried to tell you but you seem to have ignored her

Hi, buffyrnil!

If you stick to just one thread about what you're wanting to know, that would be best, because posting multiple threads about the same subject only causes confusion here.

Also, if you post what you think might be answers to what you're asking, and how you arrived at the answers, you'll be much more likely to have someone knowledgeable about the subject come along and confirm whether your answers are correct and also show you how to come up with the correct answers.

Thanks!

Thanks to Clough who described to me... a first-time user... how to post efficiently to this site! My questions were not the same, for those who didn't read them thoroughly. I simply had to post the info. Which is a key to the answer.{insults removed}

If the info you posted was all part of the same problem, it should be posted together anyway. Doing it in different posts is still just going to confuse people. (I didn't see the original so I don't know what happened there.)

As for the information Clough gave you about posting your work along with the question, even though you are new... the guidelines about posting homework questions are in big red print at the top of all the homework help forums. It's in red to draw people's attention to it.

And insulting those who are the ones that would help you ( if they even would now) is not a good way to start. Perhaps I am sorry for not reading the rules and checking out how to use the site, and/ or I am sorry for not listening to Judy when she tried to tell me not to do this.

And yes they were the same type of question, and needed to be on one question.

Closed