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The total value ( debt plus equity ) of Wilson Dover Inc. is $ 5 0 0 million and the face value of its 1

The total value (debt plus equity) of Wilson Dover Inc. is $500 million and the face value of its 1-year coupon debt is $200 million. The volatility (\sigma ) of Wilson Dover's total value is 0.60, and the risk-free rate is 5%. Assume that N(d1)=0.9720 and N(d2)=0.9050.
Refer to the data for Wilson Dover Inc. What is the value (in millions) of Wilson Dover's debt if its equity is viewed as an option?
a. $247.82
b. $186.19
c. $167.57
d. $204.81
e. $225.29

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