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ABC Company has $40 million face value outstanding of zero coupon bonds that mature in three years. The current market value of the firm's assets

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ABC Company has $40 million face value outstanding of zero coupon bonds that mature in three years. The current market value of the firm's assets is $43 million, with a standard deviation of 35% per year. If the risk-free rate is 8% per year compounded continuously, (a) what is the market value of the firm's equity? (b) what is the market value of the firm's debt? ( What is the firm's cost of debt? Is the debt risky

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