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Assume the assets of your company worth 400,000 $ and their volatility is 30 % (cost of capital is 16 %). The book value of

Assume the assets of your company worth 400,000 $ and their volatility is 30 % (cost of capital is 16 %). The book value of the debt is 350,000 $ with a maturity of 3 years. Your company pays 16 % taxes and the market shows the interest rate at the level of 4 %. What is the value of your company's equity and expected equity payoff?

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