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Incredible Inc.currently owes its creditors $300.The manager, Mr.Jack Smith can manage it for a period at a personal cost of $110.It has an asset which will generate $450 with probability 0.7 or $200 with probability 0.3 under Mr.Smith's stewardship.Under any other management, the asset will have a sure liquidation value of $250.Everybody is risk neutral and the riskless rate is zero.
-What loan repayment should the creditors offer to Mr.Smith to make him indifferent between continuing and defaulting?

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Use the following information for questions 
Incredible Inc.currently owes its creditors $300.The manager, Mr.Jack Smith can manage it for a period at a personal cost of $110.It has an asset which will generate $450 with probability 0.7 or $200 with probability 0.3 under Mr.Smith's stewardship.Under any other management, the asset will have a sure liquidation value of $250.Everybody is risk neutral and the riskless rate is zero.
-What loan repayment should the creditors offer to Mr.Smith to make him indifferent between continuing and defaulting?

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The Answer of Use the following information for questions 
Incredible Inc.currently owes its creditors $300.The manager, Mr.Jack Smith can manage it for a period at a personal cost of $110.It has an asset which will generate $450 with probability 0.7 or $200 with probability 0.3 under Mr.Smith's stewardship.Under any other management, the asset will have a sure liquidation value of $250.Everybody is risk neutral and the riskless rate is zero.
-What loan repayment should the creditors offer to Mr.Smith to make him indifferent between continuing and defaulting?

Use the Following Information for Questions