Question: Just looking for the excel formulas to enter for the d1, d2. Higgs Bassoon Corporation is a custom manufacturer of bassoons and other wind instruments.

Just looking for the excel formulas to enter for the d1, d2.

Higgs Bassoon Corporation is a custom manufacturer of bassoons and other wind instruments. Its current value of operations, which is also its value of debt plus equity, is estimated to be $200 million. Higgs has $110 million face value, zero coupon debt that is due in 3 years. The risk-free rate is 5%, and the standard deviation of returns for similar companies is 60%. The owners of Higgs Bassoon view their equity investment as an option and would like to know the value of their investment.
a. Using the Black-Scholes Option Pricing Model, how much is the equity worth?
Black-Scholes Option Pricing Model
Total Value of Firm 200.00 this is the current value of operations
Face Value of Debt 110.00
Risk Free rate 5%
Maturity of debt (years) 3.00
Standard Dev. 60.00 this is sigma--also known as volatility
d1 use the formula from the text
d2 use the formula from the text
N(d1) use the Normsdist function in the function wizard
N(d2)
Call Price = Equity Value million

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