Question $1(2$ points$)$

XYZ Corporation has zero$-$coupon debt outstanding which has a face value of $$300,$ due in five years. The market value of the firm's assets now doubles the face value of debt. The annualized standard deviation in firr values of comparable firms is $10\%$ on a annual basis. The five$-$year T$-$bond rate is $5\%.$ Estimate the value of equity, using an option pricing model $($keep two decimal places$).$

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