Question: Current assets $50 Fixed assets 50 Total assets $100 Current liabilities $30 Long-term debt 40 Total liabilities $70 Stockholders equity $30 Total liabilities and equity

Current assets $50

Fixed assets 50

Total assets $100

Current liabilities $30

Long-term debt 40

Total liabilities $70

Stockholders equity $30

Total liabilities

and equity $100

Shares outstanding: 11 million

Stock price: $6

Beta: 1.01

Risk free rate: 1.5%

Equity Market Risk Premium: 6.5%

YTM or Current borrowing cost: 7%

The firms debt is trading at 80 percent of its book value.

Tax rate: 21 percent

How do I calculate market value of debt from these numbers?

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