Problem $24-15$ Default option

Suppose that Backwoods Chemical's book balance sheet is:

$\backslash$table$[[$Backwoods Chemical Company $($Book Values$),,],[$Debit$,,$Credit$],[$Net working capital,$$400,$$$1,000,$Debt$],[$Net fixed assets,$1,600,1,000,$Equity $($net worth$)],[$Total assets,$$2,000,$$$2,000,$Total value$]]$

The debt has a one$-$year maturity and a promised interest payment of $9\%.$ Thus, the promised payment to Backwoods's creditors is $$1,090.$ The market value of the assets is $$1,200,$ and the standard deviation of asset value is $45\%$ per year. The risk$-$free interest rate is $9\%.$ Calculate the value of Backwoods's debt and equity.

Note: Do not round intermediate calculations. Round your answers to the nearest whole number.

$\backslash$table$[[$Value of equity$],[$Value of debt$]]$