Assume assets of a firm A are worth 3,000,000 and its expected continuously compounded rate of return amounts to 22 p.a. while the volatility of the company 's assets is 45. The face value of the firms debt is 1 500 000 with a maturity of 5 years. Neither further debt nor equity issuance nor dividend payments or share buy-backs are planned. At present. the credit risk-free Interest rate with a maturity of amounts to 4%. use the Merton model to calculate the value of debt.