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D Question 13 0.5 pts VU has a value of $625 million if it continues...

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D Question 13 0.5 pts VU has a value of $625 million if it continues to operate, but has outstanding debt of $800 million. If VU declares bankruptcy, bankruptcy costs will equal $125 million, and the remaining $500 million will go to creditors. Instead of declaring bankruptcy, VU proposes to exchange the firm's debt for a fraction of its equity in a workout. The minimum fraction of the firm's equity that VU would need to offer to its creditors for the workout to be successful is closest to: 80.00% 093.75% 78.13% 62.5%

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