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Question $3$

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Homework due Aug $6,202416$:$36$ CDT

Question $3,$ Part $($A$)$

$\frac{0\mathrm{.}0}{6\mathrm{.}0}$ points $($graded$)$

The market value of Company XYZ$\text{'}$s asset is currently $$15,000,000.$ The capital structure of XYZ has two elements: debt with face value $$10,000,000,$ which matures one year from now, and common equity, with $100,000$ shares outstanding. Currently, the total market value of XYZ $\text{'}$s debt is $$8,000,000,$ and the market value of its equity is $$7,000,000.$

Complete the table below entering XYZ$\text{'}$s equity and debt values $($in millions$)$ conditional on the value of its assets a year from now.

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