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Frostbite Thermalwear has a zero coupon bond issue outstanding with a face value of $50,000 that matures in one year. The current market value of

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Frostbite Thermalwear has a zero coupon bond issue outstanding with a face value of $50,000 that matures in one year. The current market value of the firm's assets is $53,600. The standard deviation of the return on the firm's assets is 38 percent per year, and the annual risk-free rate is 4 percent per year, compounded continuously. a. Based on the Black-Scholes model, what is the market value of the firm's equity and debt? (Do not round intermediate calculations and round your answers to 2 decimal places,eg.32.16 Market value Equity Debt b. What is the firm's continuously compounded cost of deb!? (Do not round intermediate calculations Enter your answer as a percent rounded to 2 decimal places, 0.9,32.16) Cost of debt

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