One yaer fom now, how much value creation is expected from the expansion? How much value is expected for stockholders? Bondholders?

"Economic
Growth " Probability W/O Expansion "With
Expansion " "Total Without
Expansion " "Total With
Expansion "
Low 0.3 $30,000,000 $33,000,000 $9,000,000 $9,900,000
Normal 0.5 35,000,000 46,000,000 17,500,000 23,000,000
High 0.2 51,000,000 64,000,000 10,200,000 12,800,000

Based on the averages determined it would appear that the stockholders would be better off
with the expansion. Reasoning being is that they stand to gain more revenue.

To calculate the expected value creation from the expansion, you need to calculate the weighted average of the value created in each economic growth scenario.

For stockholders, you need to multiply the value created in each scenario by the probability of that scenario occurring and then sum up these values.

For bondholders, you need to consider the total value without expansion and with expansion in each scenario and calculate the difference.

Let's calculate the expected value for stockholders and bondholders:

For stockholders:
1. Multiply the value created in each scenario by the probability of that scenario occurring:
- Low growth scenario: $33,000,000 * 0.3 = $9,900,000
- Normal growth scenario: $46,000,000 * 0.5 = $23,000,000
- High growth scenario: $64,000,000 * 0.2 = $12,800,000

2. Sum up these values to get the expected value for stockholders:
$9,900,000 + $23,000,000 + $12,800,000 = $45,700,000

For bondholders:
1. Calculate the total value without expansion and with expansion in each scenario:
- Low growth scenario: $9,000,000 - $33,000,000 = -$24,000,000
- Normal growth scenario: $17,500,000 - $35,000,000 = -$17,500,000
- High growth scenario: $10,200,000 - $51,000,000 = -$40,800,000

2. Sum up these values to get the expected value for bondholders:
-$24,000,000 + -$17,500,000 + -$40,800,000 = -$82,300,000

Based on these calculations, it seems that stockholders would be better off with the expansion as they can expect an average value creation of $45,700,000. On the other hand, bondholders would experience a decrease in value of -$82,300,000 due to the expansion.