Use the Information for the Question(s)below

question 41

Multiple Choice

Use the information for the question(s) below.
Monsters Incorporated (MI) is ready to launch a new product.Depending upon the success of this product,MI will have a value of either $100 million,$150 million,or $191 million,with each outcome being equally likely.The cash flows are unrelated to the state of the economy (i.e.risk from the project is diversifiable) so that the project has a beta of 0 and a cost of capital equal to the risk-free rate,which is currently 5%.Assume that the capital markets are perfect.
-Suppose that MI has zero-coupon debt with a $125 million face value due next year.The initial value of MI's debt is closest to:

• A)$125 million.
• B)$111 million.
• C)$100 million.
• D)$116 million.

Articulate the concept of the "veil of ignorance" and its role in determining principles of justice.

Explain Rawls' views on moral development and its relevance in the formation of a just society.

Distinguish between Rawls' two principles of justice and their significance.

Analyze the relationship between institutions and the distribution of rights and duties as proposed by Rawls.

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Definitions:

Cannon-Bard Theory

A theory of emotion that argues that physiological arousal and emotional experience occur simultaneously but independently.

Autonomic Arousal

The activation of the autonomic nervous system, leading to physiological changes such as increased heart rate or sweating, usually in response to stress or excitement.

Conscious Experience

Conscious experience refers to the awareness one has of one's own thoughts, feelings, and surroundings, which is a major area of study in psychology and philosophy.

Schachter Two-factor Theory

A psychological theory proposing that emotion is based on physiological arousal and cognitive interpretation of that arousal.