Credit risk measures using the structural model: assume a company has the following characteristics.
Time t value of the firm’s assets: At = $3,000
Expected return on assets: u = 0.05 per year
Risk-free rate: r = 0.02 per year
Face value of the firm’s debt: K = $2,000
Time to maturity of the debt (tenor): T – t = 1 year
Asset return volatility: σ = 0.35 per year
(a) Calculate the probability that the debt will default over the time to maturity.
(b) Calculate the expected loss.
(c) Calculate the present value of the expected loss.

Minolta inc. is considering a project that has the following cash flow and wacc data. what is the project's mirr? note that a project's projected mirr can be less than the wacc (and even negative), in which case it will be rejected. wacc: 10.00% year 0 1 2 3 4 cash flows -$850 300 $320 $340 $360

Sam and diane are completing their federal income taxes for the year and have identified the amounts listed here. how much can they rightfully deduct? • agi: $80,000 • medical and dental expenses: $9,000 • state income taxes: $3,500 • mortgage interest: $9,500 • charitable contributions: $1,000.

Evan company reports net income of $232,000 each year and declares an annual cash dividend of $100,000. the company holds net assets of $2,130,000 on january 1, 2017. on that date, shalina purchases 40 percent of evan's outstanding common stock for $1,066,000, which gives it the ability to significantly influence evan. at the purchase date, the excess of shalina’s cost over its proportionate share of evan’s book value was assigned to goodwill. on december 31, 2019, what is the investment in evan company balance (equity method) in shalina’s financial records?