Assume you would like to invest in a privately held company D. You know that this year's expected FCFs are $750000, which will grow at 5 percent per year. Company D's debt matures in 4 years and shows the book value of $50000. In the table below, you find assets factor sensitivities for market premium, size and value factors from the Fama-French three-factor model and the volatility of assets for each company in the peer group: Peer group company Unlevered betas (assets beta) Assets volatility Market premium Size Value A 1.05 -0.21 -0.32 15% B 1.16 -0.36 -0.55 17% C 1.14 -0.45 -0.72 10% The long-term factor sensitivities are: Factor returns Market premium 13.00% Size 2.00% Value 1.30% Calculate the market value of debt for company D using the Merton