Question: Please use the KMV model equation 1 1 . 2 and 1 1 . 4 and the data ( from 2 0 2 1 to

Please use the KMV model equation 11.2 and 11.4 and the data (from 2021 to 2023) to calculate market value of the assets (V) and the volatility of the assets (\sigma a) from 2021 to 2023.
E=VN(d1)-De-rTN(d2)
Where : d1=ln(VD)+(r+12a2)TaT2,d2=d1-aT2 Volatility of equity =e=N(d1)VaE..\table[[Years,2021$m,2022 $m,2023$m],[Items],[E is the market value of equity,2,915.43,1,917.27,2,581.20],[D is the book value of liabilities,1746.1,1630.3,1735.3,-2-10],[T is the time horizon,1,1,1],[r is the risk free borrowing and lending rate,1.19%,3.08%,],[volatility of equity (\sigma e),1.00%,21.10%,7.50%,-2-10%],[\table[[N(.)isthecu\mu lativenormaldistribution],[function whose value is calculated at d1],[and d2]],,,]]
 Please use the KMV model equation 11.2 and 11.4 and the

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!