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Moana inc. has a share value (price) of $200 and a number of shares outstanding of 100,000. the company has a total liabilities of $30,000,000
Moana inc. has a share value (price) of $200 and a number of shares outstanding of 100,000. the company has a total liabilities of $30,000,000 (where the short term liabilities count for $10,000,000). however, the market value of assets is $70,000,000 and its volatility is 25% as derived from the option pricing model.
1. calculate the default point
2. calculate the distance to default
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