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3. Firm X's assets are worth $100. It has $80 of zero-coupon debt outstanding that is due to be repaid at the end of two

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3. Firm X's assets are worth $100. It has $80 of zero-coupon debt outstanding that is due to be repaid at the end of two years. The risk-free rate is 5%, and the standard deviation of the returns on firm X's assets is 40% per year. Calculate the present value of the company's deb and equity

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