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d. Graph the cost of debt versus the face value of debt for values of the face value from $0.5 to $8 million. Cost of
d. Graph the cost of debt versus the face value of debt for values of the face value from $0.5 to $8 million. | ||||||||||||
Cost of Debt | ||||||||||||
Face Value of Debt | hint: use a data table | |||||||||||
10 | ||||||||||||
20 | ||||||||||||
30 | ||||||||||||
40 | ||||||||||||
50 | ||||||||||||
60 | ||||||||||||
70 | ||||||||||||
80 | ||||||||||||
90 | ||||||||||||
100 | ||||||||||||
110 | ||||||||||||
120 | ||||||||||||
130 | ||||||||||||
140 | ||||||||||||
150 | ||||||||||||
160 | ||||||||||||
b. Graph the values of debt and equity for volatilities from 0.10 to 0.90 when the face value of the debt is $2 million. | ||||||||||||
Value of Debt | Value of Equity | |||||||||||
Volatility | Face Value of Debt | Volatility | Face Value of Debt | |||||||||
110.00 | 110.00 | |||||||||||
0.1 | 0.1 | |||||||||||
0.2 | 0.2 | |||||||||||
0.3 | 0.3 | |||||||||||
0.4 | 0.4 | |||||||||||
0.5 | 0.5 | |||||||||||
0.6 | 0.6 | |||||||||||
0.7 | 0.7 | |||||||||||
0.8 | 0.8 | |||||||||||
0.9 | 0.9 | |||||||||||
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