20. A company has a total market value of 230 crore. The face of its debt (assume...
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20. A company has a total market value of 230 crore. The face of its debt (assume pure discount debt) is 95 crore. The standard deviation of the firm's share return is 25 per cent and debt has a maturity of 8 years. The risk-free rate is 12 per cent. What is the value of the company's equity?
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