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Zabia, Inc., has a bond issue with a foce value of $1,000 that is coming due in one year. The value of the company's assets
Zabia, Inc., has a bond issue with a foce value of $1,000 that is coming due in one year. The value of the company's assets is currently $1,260. Deniel Gorman, the CEO, believes that the assets in the company will be worth either $890 or $1,410 in a year. The going rate on one-year T-blits is 5 percent 2-1. What is the value of the company's equity? (Do not round Intermediate calculations and round your answer to 2 decimal places, 0.9., 32.16.) a-2. What is the value of the debt? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Value of equity -2 Value of debt Suppose the company can reconfigure its existing assets in such a way that the value in a year will be $950 or $1.810. b. If the current value of the assets is unchanged, what is the new value of the company's equlty? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.... 32.16.) value of equity
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