[Questions 14-15] A company's current value of assets is $300 million, and the volatility of the asset value is 20% per annum. The future value of assets is log-normally distributed. The company has issued a debt whose face value is $240 million, and it needs to repay the debt in one year. The risk-free interest rate is 5% per annum. Question 14. What is the current value of the company's equity? Use the Black-Scholes-Merton model. $63.54 million $71.70 million $73.77 million $75.67 million [Questions 14-15] A company's current value of assets is $300 million, and the volatility of the asset value is 20% per annum. The future value of assets is log-normally distributed. The company has issued a debt whose face value is $240 million, and it needs to repay the debt in one year. The risk-free interest rate is 5% per annum. Question 15. What is the default probability under the risk- neutral probability? 10.3% 42.3% 57.7% 89.7% [Questions 14-15] A company's current value of assets is $300 million, and the volatility of the asset value is 20% per annum. The future value of assets is log-normally distributed. The company has issued a debt whose face value is $240 million, and it needs to repay the debt in one year. The risk-free interest rate is 5% per annum. Question 14. What is the current value of the company's equity? Use the Black-Scholes-Merton model. $63.54 million $71.70 million $73.77 million $75.67 million [Questions 14-15] A company's current value of assets is $300 million, and the volatility of the asset value is 20% per annum. The future value of assets is log-normally distributed. The company has issued a debt whose face value is $240 million, and it needs to repay the debt in one year. The risk-free interest rate is 5% per annum. Question 15. What is the default probability under the risk- neutral probability? 10.3% 42.3% 57.7% 89.7%