Question: When applying Merton's Model or the KMV model to estimate distance to default: a. We can directly observe the market value of the firm's assets.

When applying Merton's Model or the KMV model to estimate distance to default:

a.

We can directly observe the market value of the firm's assets.

b.

All we need to do is observe the market value of the firm's equity.

c.

All we need to do is observe the market value of the firm's liabilities.

d.

We can solve for the market value of the firm's assets if we can calculate the volatility of the market value of the firm's assets

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