Use the Following Information to Answer the Question(s)below

question 19

Multiple Choice

Use the following information to answer the question(s) below.
Nielson Motors has a debt-equity ratio of 1.8,an equity beta of 1.6,and a debt beta of 0.20.It is currently evaluating the following projects,none of which would change Nielson's volatility. (All amounts are in $millions. )
-If Nielson Motors invests in only those projects which are beneficial to the stockholders,then the total debt overhang associated with accepting these project(s) is closest to:

• A)$22.5 million.
• B)$36.0 million.
• C)$38.0 million.
• D)$57.5 million.

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Definitions:

Personal Factors

Individual attributes such as personality, age, personal beliefs, and life experiences that influence behavior and decisions.

Work Stress

The physical and emotional strain caused by work-related pressures and challenges.

Non-work Factors

Elements outside of the workplace that can affect an individual's performance and well-being, such as family issues or personal health.

Mental Exhaustion

A state of extreme tiredness and depletion in mental resources, often resulting from prolonged cognitive activity or stress.