Question: Problem 3 Bookmark this page Problem 3 O points possible (ungraded) The market value of Company XYZ's asset is currently $25.00 million. The capital structure




Problem 3 Bookmark this page Problem 3 O points possible (ungraded) The market value of Company XYZ's asset is currently $25.00 million. The capital structure of XYZ has two elements: debt with face value $18.00 million, which matures one year from now, and common equity, with 100,000 shares outstanding. Currently, the total market value of XYZ's debt is $14.00 million, and the market value of its equity is $11.00 million Save Submit (a) 0 points possible (ungraded) (a) Compute XYZ's equity and debt values (in millions) conditional on the value of its assets a year from now. Submit (a1) 0.0/1.0 point (graded (81) If the asset is 10.00 million, then the equity is million (22) 0.0/1.0 point (graded) (a2) If the asset is 10.00 million, then the debt is million Submit You have used 0 of 2 attempts (a3) 0.0/1.0 point (graded) (23) If the asset is 25.00 million, then the equity is million (a4) 0.0/1.0 point (graded) (a4) If the asset is 25.00 million, then the debt is million Submit You have used 0 of 2 attempts (a5) 0.0/1.0 point (graded) (a5) If the asset is 40.00 million, then the equity is million (a6) 0.0/1.0 point (graded) (6) If the asset is 40.00 million, then the debt is million Save Submit You have used 0 of 2 attempts
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