Last two blank options are both: increase, decrease

Blue Ram Brewing is a manufacturing firm. Bfue Ram's current value of operations, including debt and equity, is estimated to be $20 million. Blue Ram has 58 miltion face-value zero coupon debt that is due in three years, The risk-free rate is 6%, and the volatility of companies similiar to Blue Ram is 60%. Blue Ram's performance has not been very good as compared to previous years, Because the company has debt, it will repay its loan, but the company has the option of not paying equity hoiders. The ability to make the decision of whether to pay or not looks very much like an option. Based on your understanding of the Black-Scholes option pricing model (OPM), calculate the following values and complete the table. (Note: Use 2.7183 as the approximate value of e in your calculations. Do not round intermediate calculations. Round final answers to two decimal places.) Blue Ram's management is implementing a risk management strategy to reduce its volatility. Complete the following table, assuming that the goal is to reduce the company's volatility to 3096 . (Note: Do not round intermediate calculations, Round final answers to two decimal piaces.) Complete the following sentence, assuming that Biue Ram's risk management strategy is successful. if its risk management strategy is successful and Blue Ram can reduce its volatility, the value of Blue Ram's debt wili and the value of its stock will 2. 7183 as the approximate value of e in your calculations. Do a risk management : Complete the following table, assuming that the goal is to redu Round final answers to two decimal places.) Values: Blue Ram Brewing Equity value Debt value Debt yield Blue Ram's manas $5.86 million menting a risk managem $75.27 million Complete the following table, assuming that the goal is to Round final answers to two decimal places.) Round final answers to two decimal places.) Equity value at 30% volatility Debt value at 30% volatility Debt yield at 30% volatility Complete the following sentence, a Ram's risk managen If its risk management strategy is ue Ram can reduce il Equity value at 30% volatility Debt value at 30% volatility Debt yield at 30% volatility Complete the following sentence, a ue Ram's risk manage If its risk management strategy is Blue Ram can reduce of its stock will Complete the following table, assum 6.48% the goal is to Round final answers to two decima 6.35% Goals: Blue Ram Brewing Equity value at 30% volatility Debt value at 30% volatility Debt yield at 30% volatility Blue Ram Brewing is a manufacturing firm. Bfue Ram's current value of operations, including debt and equity, is estimated to be $20 million. Blue Ram has 58 miltion face-value zero coupon debt that is due in three years, The risk-free rate is 6%, and the volatility of companies similiar to Blue Ram is 60%. Blue Ram's performance has not been very good as compared to previous years, Because the company has debt, it will repay its loan, but the company has the option of not paying equity hoiders. The ability to make the decision of whether to pay or not looks very much like an option. Based on your understanding of the Black-Scholes option pricing model (OPM), calculate the following values and complete the table. (Note: Use 2.7183 as the approximate value of e in your calculations. Do not round intermediate calculations. Round final answers to two decimal places.) Blue Ram's management is implementing a risk management strategy to reduce its volatility. Complete the following table, assuming that the goal is to reduce the company's volatility to 3096 . (Note: Do not round intermediate calculations, Round final answers to two decimal piaces.) Complete the following sentence, assuming that Biue Ram's risk management strategy is successful. if its risk management strategy is successful and Blue Ram can reduce its volatility, the value of Blue Ram's debt wili and the value of its stock will 2. 7183 as the approximate value of e in your calculations. Do a risk management : Complete the following table, assuming that the goal is to redu Round final answers to two decimal places.) Values: Blue Ram Brewing Equity value Debt value Debt yield Blue Ram's manas $5.86 million menting a risk managem $75.27 million Complete the following table, assuming that the goal is to Round final answers to two decimal places.) Round final answers to two decimal places.) Equity value at 30% volatility Debt value at 30% volatility Debt yield at 30% volatility Complete the following sentence, a Ram's risk managen If its risk management strategy is ue Ram can reduce il Equity value at 30% volatility Debt value at 30% volatility Debt yield at 30% volatility Complete the following sentence, a ue Ram's risk manage If its risk management strategy is Blue Ram can reduce of its stock will Complete the following table, assum 6.48% the goal is to Round final answers to two decima 6.35% Goals: Blue Ram Brewing Equity value at 30% volatility Debt value at 30% volatility Debt yield at 30% volatility