Net working capital 400 Debt 1000 Net Fixed assets 1600 Equity 1000 Total assets 2000 Total 2000 The debt has a one-year maturity. The market value of the assets is$1,200, and the standard deviation of the asset value 45% per year. The Rf is 9%. Calculate the value of Toms's debt asnd equity?

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Net working capital 400   Debt  1000
Net Fixed assets  1600   Equity  1000
Total assets  2000   Total  2000

 

The debt has a one-year maturity. The market value of the assets is$1,200, and the standard deviation of the asset value 45% per year. The Rf is 9%. Calculate the value of Toms's debt asnd equity?

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