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Suppose that Backwoods Chemical s book balance sheet is: Backwoods Chemical Company ( Book Values ) Debit Credit Net working capital $ 4 0 0

Suppose that Backwoods Chemicals book balance sheet is:
Backwoods Chemical Company (Book Values)
Debit Credit
Net working capital $ 400 $ 1,000 Debt
Net fixed assets 1,6001,000 Equity (net worth)
Total assets $ 2,000 $ 2,000 Total value
The debt has a one-year maturity and a promised interest payment of 9%. Thus, the promised payment to Backwoodss creditors is $1,090. The market value of the assets is $1,200, and the standard deviation of asset value is 45% per year. The risk-free interest rate is 9%. Calculate the value of Backwoods's debt and equity.
Note: Do not round intermediate calculations. Round your answers to the nearest whole number.

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