![Problem 24-7 Equity as an Option (L04] Rackin Pinion Corporations assets are currently worth $1,140. In one year, they will](http://img.homeworklib.com/questions/d58e62b0-7a62-11ea-b168-8f44cb05934f.png?x-oss-process=image/resize,w_560)
Homework Answers
Given,
Assets = $1140
Risk free rate (r) = 7% or 0.07
Face value of debt = $1000
Solution :-
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