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Problem 2 4 - 1 5 Default option Suppose that Backwoods Chemical's book balance sheet is: table [ [ Backwoods Chemical Company ( Book
Problem Default option Suppose that Backwoods Chemical's book balance sheet is: tableBackwoods Chemical Company Book ValuesDebitCreditNet working capital,$$DebtNet fixed assets,Equity net worthTotal assets,$$Total value The debt has a oneyear maturity and a promised interest payment of Thus, the promised payment to Backwoods's creditors is $ The market value of the assets is $ and the standard deviation of asset value is per year. The riskfree interest rate is Calculate the value of Backwoods's debt and equity. Note: Do not round intermediate calculations. Round your answers to the nearest whole number. tableValue of equityValue of debt
Problem Default option
Suppose that Backwoods Chemical's book balance sheet is:
tableBackwoods Chemical Company Book ValuesDebitCreditNet working capital,$$DebtNet fixed assets,Equity net worthTotal assets,$$Total value
The debt has a oneyear maturity and a promised interest payment of Thus, the promised payment to Backwoods's creditors is $ The market value of the assets is $ and the standard deviation of asset value is per year. The riskfree interest rate is Calculate the value of Backwoods's debt and equity.
Note: Do not round intermediate calculations. Round your answers to the nearest whole number.
tableValue of equityValue of debt
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