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Steinberg Corporation and Dietrich Corporation are identical firms except that Dietrich is more levered. Both companies will remain in business for one more year. The companies' economists agree that the probability of the continuation of the current expansion is 80 percent for the next year, and the probability of a recession is 20 percent. If the expansion continues, each firm will generate earnings before interest and taxes (EBIT) of $ 2.59 million. If a recession occurs, each firm will generate earnings before interest and taxes (EBIT) of $ 910,000. Steinberg's debt obligation requires the firm to pay $ 817,000 at the end of the year. Dietrich's debt obligation requires the firm to pay $ 1.17 million at the end of the year. Neither firm pays taxes. Assume a discount rate of 11 percent. Requirement 1:
What is the value today of Steinberg's debt and equity? What about that for Dietrich's?
An HMO has a point of service (POS) option for its members but will pay only 80 percent of approved charges. If a member goes out of network for a medical procedure with a charge of $2,000 of which $1,2000 is approved how much must the member pay.
within the discussion board area write 400ndash600 words that respond to the following questions with your thoughts
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