Question
Assume your company shows the market values of equity and debt at the level of $175373 and $224626, respectively. The rate of return on assets
Assume your company shows the market values of equity and debt at the level of $175373 and $224626, respectively. The rate of return on assets is 33 percent and its volatility is 45 percent. The company is financed by a loan that matures in 3 years and shows the face value of $330000.
What is the probability of default of your company if a T-bill yields 6 percent at the market?
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
9th Edition
1337614689, 1337614688, 9781337668262, 978-1337614689
