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A corporation has a zero - coupon bond issue with a face value of $ 2 8 , 0 0 0 that matures in one

A corporation has a zero-coupon bond issue with a face value of $28,000 that matures in one year.The firm's assets have a current market value of $34,600. The return on the firm's assets has a standard deviation of 53% per year, while the annual risk-free rate is 5% per year, compounded continuously. Based on the Black-Scholes model:1. What is the market value of the corporation's equity? Showcalculations and the final answer for each of the following:d1d2N(d1)N(d2)market value of the equity2. What is the market value of the corporation's debt?3. What is the firm's continuously compounded debt cost?

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