Good Time Company is a regional chain department store. It will remain in business for one...

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Good Time Company is a regional chain department store. It willremain in business for one more year. The probability of a boomyear is 80 percent and the probability of a recession is 20percent. It is projected that the company will generate a totalcash flow of $199 million in a boom year and $90 million in arecession. The company's required debt payment at the end of theyear is $124 million. The market value of the company’s outstandingdebt is $97 million. The company pays no taxes.

a.
What payoff do bondholders expect to receive in the event of arecession? (Do not round intermediate calculations andenter your answer in dollars, not millions of dollars, rounded tothe nearest whole number, e.g., 1,234,567.)
b. What is the promised return on the company's debt? (Donot round intermediate calculations and enter your answer as apercent rounded to 2 decimal places, e.g., 32.16.)
c. What is the expected return on the company's debt?

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Good Time Company is a regional chain department store. It willremain in business for one more year. The probability of a boomyear is 80 percent and the probability of a recession is 20percent. It is projected that the company will generate a totalcash flow of $199 million in a boom year and $90 million in arecession. The company's required debt payment at the end of theyear is $124 million. The market value of the company’s outstandingdebt is $97 million. The company pays no taxes. a.What payoff do bondholders expect to receive in the event of arecession? (Do not round intermediate calculations andenter your answer in dollars, not millions of dollars, rounded tothe nearest whole number, e.g., 1,234,567.)b.What is the promised return on the company's debt? (Donot round intermediate calculations and enter your answer as apercent rounded to 2 decimal places, e.g., 32.16.)c.What is the expected return on the company's debt?

a.	What payoff do bondholders expect to receive in the event of arecession? (Do not round intermediate calculations andenter your answer in dollars, not millions of dollars, rounded tothe nearest whole number, e.g., 1,234,567.)
b.	What is the promised return on the company's debt? (Donot round intermediate calculations and enter your answer as apercent rounded to 2 decimal places, e.g., 32.16.)
c.	What is the expected return on the company's debt?