Question: Given the following parameter values, use the Merton model to find the value of the firm's equity (answer to the nearest integer.) Maturity=10 years; Debt

Given the following parameter values, use the Merton model to find the value of the firm's equity (answer to the nearest integer.)

Maturity=10 years; Debt face value= 340; Volatility of the assets= 30%; Firm value = 500; Risk-free rate = 4%

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