S$25-20$ Equity as an Option and NPV $[$LO$4,5]$

A company has a single zero coupon bond outstanding that matures in five years with a face value of $$16\mathrm{.}5$ million. The current value of the company$$s assets is $$15\mathrm{.}1$ million, and the standard deviation of the return on the firm$$s assets is $41$ percent per year. The risk$-$free rate is $6$ percent per year, compounded continuously.

a$.$ What is the current market value of the company$$s equity? $($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$.$ What is the current market value of the company$$s debt? $($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

c$.$ What is the company$$s continuously compounded cost of debt? $($Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

d$.$ The company has a new project available. The project has an NPV of $$2\mathrm{.}2$ million. If the company undertakes the project, what will be the new market value of equity? Assume volatility is unchanged. $($Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

e$.$ Assuming the company undertakes the new project and does not borrow any additional funds, what is the new continuously compounded cost of debt? $($Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$