APPs capital structure is made of 500,000 shares of common stock and of 50,000 bonds. Currently, one share trades at $40. The debt instrument is zero-coupon bond maturing in exactly 2 years, each with a face value of $1,000. Historically, the assets in this industry have achieved a return with a volatility of 25%. The interest rate for a Treasury bond maturing in 2 years time is 4% per year. Explain how to determine the current value of the firms assets.