Excel corporation is currently valued at Rs. 250 crore. It has an outstanding debt of Rs. 100

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Excel corporation is currently valued at Rs. 250 crore. It has an outstanding debt of Rs. 100 crore with a maturity of 5 years. The volatility (standard deviation) of the Excel share's return is 60 per cent. The risk-free rate is 10 per cent.

Using black and Scholes model: What is the market value of Excel's equity? What is the current market value of its debt?

Related Book For answer-question

Valuation The Art and Science of Corporate Investment Decisions

ISBN: 978-0133479522

3rd edition

Authors: Sheridan Titman, John D. Martin

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Posted Date: Jan 10, 2024 05:08 AM

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Excel corporation is currently valued at Rs. 250 crore. It has an outstanding debt of Rs. 100

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Valuation The Art and Science of Corporate Investment Decisions

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