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please don't use excel 7) A company has a zero coupon bond ( a loan) than matures in 10 years with a Face value of
please don't use excel
7) A company has a zero coupon bond ( a loan) than matures in 10 years with a Face value of $15 million. The current value of the company's assets is $13.4 million, and the standard deviation is 39% a year. The risk free rate is 6% a year, compounded continuously. a) What is the current value of the company's equity? b) What is the current value of its debt? c) The company has a new project available with a NPV = $1.2 million. What is the new value of the company's equity? 7) A company has a zero coupon bond ( a loan) than matures in 10 years with a Face value of $15 million. The current value of the company's assets is $13.4 million, and the standard deviation is 39% a year. The risk free rate is 6% a year, compounded continuously. a) What is the current value of the company's equity? b) What is the current value of its debt? c) The company has a new project available with a NPV = $1.2 million. What is the new value of the company's equityStep by Step Solution
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