The ________ outlines possible alternative solutions

According to the data in Table 11-2, what is the critical path?

A) A-B B) A-C C) B-D D) A-B-C-D E) None of the above

Flimsy Construction Inc generates perpetual annual EBIT of $500. The cost of unlevered equity for Flimsy is 10%. The corporate tax rate is 35%. Flimsy has 300 shares outstanding that trade for $6.89. Flimsy has debt worth $1,512

What is the present value of financial distress costs for Flimsy? Assume that there are no other market imperfections other than costs of bankruptcy. A) $100 B) $200 C) $300 D) $400 E) $500