Suppose Backwoods Chemical Limited is financed partly by a zero$-$coupon bond that has a $3-$ year maturity. The market value of the company$$s total assets is $ $1316,$ and the annual standard deviation of its asset value is $37\%.$ The risk$-$free interest rate is $4\%.$

The company$$s book$-$value balance sheet is:

Backwoods Chemical Company $($Book Values$)$

Net working capital

$ $490$

$ $1,090$

Debt

Net fixed assets

$ $1,690$

$ $1,090$

Equity $($net worth$)$

Total assets

$ $2,180$

$ $2,180$

Total value