A company has a zero coupon bond issue outstanding with a face value of $40,000 that matures in one year. The current market value of the firms assets is $56,000. The standard deviation of the return on the firms assets is 56 percent per year, and the annual risk-free rate is 4 percent per year, compounded continuously. Based on the Black Scholes model, what is the market value of the firms equity and debt? Formula for the Black-Scholes model is given below. Standard normal cumulative probability table is attached.

where: Black-Scholes Model C = SN(d) - Ee-Ri Nd.) d. = [In(S/E) + (R+ o2/2)]/Vot d, = d, - Vot