Question
A company has assets worth $366.11 million. It has debt with a total face value of $205.4 million. If the risk-free interest rate is 2.25%
A company has assets worth $366.11 million. It has debt with a total face value of $205.4 million. If the risk-free interest rate is 2.25% and the standard deviation of monthly returns on the companys stock is 0.188, what is the likelihood the company will be unable to repay the debt in three years when it is due?
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Financial Management Of Health Care Organizations
Authors: William N. Zelman, Michael J. McCue, Noah D. Glick, Marci S. Thomas
5th Edition
1119553849, 9781119553847
