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11. You are given the following information about firm A: Market value of asset at time 0 1000 Market value of asset at time1 1200

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11. You are given the following information about firm A: Market value of asset at time 0 1000 Market value of asset at time1 1200 - Short-term debt 500 - Long-term debt-300 Annualized asset volatility 10% According to KMV model, what are the default point and the distance to default at time 1? A.800 3.33 B. 650 7.50 C. 650 4.58 D. 500 5.83

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