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Suppose that Backwoods Chemical's book balance sheet is: The debt has a one - year maturity and a promised interest payment of 9 % .

Suppose that Backwoods Chemical's book balance sheet is:
The debt has a one-year maturity and a promised interest payment of 9%. Thus, the promised payment to Backwoods's 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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