RF rate is 5%, market value of assets is 40milliom, face value of pure discount debt is 16 million, debt maturity is 3 yrs, asset return standard deviation is 40%,
market value of equity is 26.626 million
market value of debt is 13.354 million
Can someone tell me how they calculated the market value of equity and debt? what equation did they use/calculations?
That is the information of a firm. no information required about stocks or shares
market value of equity is 26.626 million
market value of debt is 13.354 million
Can someone tell me how they calculated the market value of equity and debt? what equation did they use/calculations?
That is the information of a firm. no information required about stocks or shares