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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 oneyear maturity and a promised interest payment of Thus, the promised payment to Backwoods's creditors is
$ The market value of the assets is $ and the standard deviation of asset value is per year. The riskfree interest rate
is 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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