3 Sunburn Sunscreen has a zero coupon bond issue outstanding with a $28,000 face value that matures in one year. The cur
Posted: Thu May 19, 2022 12:16 am
3 Sunburn Sunscreen has a zero coupon bond issue outstanding with a $28,000 face value that matures in one year. The current market value of the firm's assets is $29,900. The standard deviation of the return on the firm's assets is 38 percent per year, and the annual risk-free rate is 5 percent per year, compounded continuously. 25 points Based on the Black-Scholes model, what is the market value of the firm's equity and debt? (Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) eBook Market value Print Equity Debt References