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Black Schole model can be used to value capital budgeting decisions. A firm is considering to invest in a project. Currently firm has the following

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Black Schole model can be used to value capital budgeting decisions. A firm is considering to invest in a project. Currently firm has the following information: Market value of firm's assets is 17 Million face value of firm's zero coupon debt is 7 SMillion standard deviation of firm's asset return is 35% The maturity of firm's zero coupon debt is 5 years. Risk free rate is 39 If the firm takes this project, it will increase its market value of asset by 2 Million In addition, the standard deviation will be changed to 459 per year. Use Black-schole model to find out the market value of equity after the firm takes this project (Million) (Please DO NOT round your intermediate steps and format and round your FINAL answer to 5 Millions with ONE decimal place for example, 123 only)

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