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A company has a single zero coupon bond outstanding that matures in five years with a face value of $ 1 4 . 5 million.

A company has a single zero coupon bond outstanding that matures in five years with a face value of $14.5 million. The current value of the companys assets is $12.8 million, and the standard deviation of the return on the firms assets is 41 percent per year. The risk-free rate is 6 percent per year, compounded continuously.
What is the current market value of the companys equity?
Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g.,1,234,567.89.
What is the current market value of the companys debt?
Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g.,1,234,567.89.
What is the companys continuously compounded cost of debt?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,32.16.
The company has a new project available. The project has an NPV of $1.5 million. If the company undertakes the project, what will be the new market value of equity? Assume volatility is unchanged.
Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g.,1,234,567.89.
Assuming the company undertakes the new project and does not borrow any additional funds, what is the new continuously compounded cost of debt?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,32.16.

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