Use the Information for the Question(s)below

question 13

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 total value of MI with leverage is closest to:

• A)$133 million.
• B)$140 million.
• C)$147 million.
• D)$125 million.

Discuss the impact of technology on political participation.

Understand the concept of political power and its relation to social organization.

Assess the role of international relations in promoting or hindering democracy.

Comprehend Max Weber's concept of legal-rational authority and its significance in modern societies.

---

Definitions:

Hold Money

The act of retaining cash or money in accounts as savings or reserves, rather than investing or spending it.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price, holding all else constant.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, typically used to assess inflation.

Inflation Rate

The growth rate in the common price range for goods and services, downgrading the practical purchasing scope.