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Firm F has a debt with maturity one year, face value 50,8% annual coupon rate F assets at t=1 : worth 80 or 40 with

image text in transcribed Firm F has a debt with maturity one year, face value 50,8% annual coupon rate F assets at t=1 : worth 80 or 40 with equal probability No taxes The of F's equity is 0.8;rf=2%;E(rM)=8% Compute the value of F equity at t=0 Firm F has a debt with maturity one year, face value 50,8% annual coupon rate F assets at t=1 : worth 80 or 40 with equal probability No taxes The of F's equity is 0.8;rf=2%;E(rM)=8% Compute the value of F equity at t=0

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