Balance sheet assets should be valued at

________ is mechanisms that partner firms can use to better align their self-interests. In these arrangements, a supplier assists its customers in becoming more profitable and exposes itself to potential or actual losses in accomplishing this

a. Flare out by unbundling b. Flare out with augmentation c. Arbitration d. Risk-sharing, gain-sharing agreement

The current value of levered firm ABC, Inc is $100 million. Its capital structure consists of equity and pure discount debt on which a payment of $80 mn. is due in 5 years. The risk-free rate is 5%

Using the Black-Scholes Option Pricing Model, the value of the firm's equity is (i) if ?=20%, and is (i) if ?=40%. Assuming that the increase in ? was a deliberate action of the firm's management designed to expropriate wealth from bondholders to stockholders, what was the value of this expropriation? (i) (ii) __(iii)__ a. $40.3 mn. $40.3 mn. $0 b. $33.3 mn. $50.4 mn. $17.1 mn. c. $33.3 mn. $40.3 mn. $7.0 mn. d. $40.3 mn. $50.4 mn. $10.1 mn. (The BSOPM formula and values of the cumulative normal distribution function, must be supplied.)