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A company's assets are currently valued at $640,000. In 12 months, this company's debt matures and needs to be paid off. It has a $340,000
A company's assets are currently valued at $640,000. In 12 months, this company's debt matures and needs to be paid off. It has a $340,000 face value due at maturity. The cost of debt is 4% per year. It is possible to explain and prove that one can view the shareholders of this company as owning a on its assets with a strike price
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