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b. How much is the debt worth today? What is its yield? Debt value = Total Value - Equity Value = 5 ?9.15 million Debt

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b. How much is the debt worth today? What is its yield? Debt value = Total Value - Equity Value = 5 ?9.15 million Debt yield = 8.10?% c. How much would the equity value and the yield on the debt change if Fethe's management were able to use risk management techniques to reduce its volatility to 45 percent? Can you explain this? Equity value at 60% volatility 12816743 million Equity value at 45% volatility 12035314 million Percent change 6.1% million d. Graph the cost of debt versus the face value of debt for values of the face value from 59.5 to $8 mil": Cost of Debt Face Value of Deb1 B.10?% hint: use a data table 10 20 1.200309% 30 40 1000.00% 50 so "9le 7 600.00% 80

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