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Buckeye Industries has a bond issue with a face value of $1000. The value of Buckeyes asset is $1200. In one year they will be
- Buckeye Industries has a bond issue with a face value of $1000. The value of Buckeyes asset is $1200. In one year they will be worth either $800 or $1400. The going rate on T-bill is 4 percent. What is the value of debt, equity, and interest rate on debt?
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