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Zymase is a biotech startup. Researchers must choose one of three different strategies. The possible...

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Zymase is a biotech startup. Researchers must choose one of three different strategies. The possible payoffs (after tax) and their likelihoods for each strategy are shown below. Strategy A is certain (only one possible payoff), while Strategies B and C each have two possible outcomes. Strategy A Probability 100% Payoff (million) Probability Payoff (million) $85 $150 $350 Which of the following is the best answer? B 50% SC 50% 90% C 10 % $0 OA Stockholders will prefer the safest strategy, A, regardless of the firm's debt level. O B. Stockholders are more likely to prefer Strategy C if Zymase has a low debt level. O C. Stockholders are more likely to prefer Strategy C if Zymase has a high debt level O D. Debt level does not affect the preferences of stockholders, because they are looking for the highest NPV

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