M&M Proposition 1: How Much Does Dynamo Currently Pay in Interest

question 2

Multiple Choice

M&M Proposition 1: How much does Dynamo currently pay in interest, and how much will it have to pay after the restructuring in the prior problem, assuming that the cost of debt is constant?

• A) $42 and $26.25
• B) $26.25 and $42
• C) $160 and $37.50
• D) $37.50 and $60

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