Following this approach, you should address the questions below. (a) Estimate the annualized equity volatility for the firm (i.e. for stock returns over 250 days). You should assume that daily stock returns are statistically independent across different days. (b) Using the simple approach described in class, compute the values of and . (c) Calculate the distance to default for this firm. You should set the value of equal to 5%. (d) Determine the probability of default (Hint: you can find calculators for the standard normal distribution online or using Excel)