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Sunburn Sunscreen has a zero coupon bond issue outstanding with a $ 2 7 , 0 0 0 face value that matures in one year.

Sunburn Sunscreen has a zero coupon bond issue outstanding with a $27,000 face value that matures in one year. The current market value of the firms assets is $28,500. The standard deviation of the return on the firms assets is 39 percent per year, and the annual risk-free rate is 4 percent per year, compounded continuously. Based on the Black-Scholes model, what is the market value of the firms equity and debt?

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