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Business, 15.06.2021 04:30 jay0630

Wilson Dover Inc. The total value (debt plus equity) of Wilson Dover Inc. is $500 million and the face value of its 1-year coupon debt is $200 million. The volatility (σ) of Wilson Dover's total value is 0.60, and the risk-free rate is 5%. Assume that N(d1) = 0.9720 and N(d2) = 0.9050. Refer to the data for Wilson Dover Inc. What is the value (in millions) of Wilson Dover's debt if its equity is viewed as an option? a. $167.57
b. $186.19
c. $204.81
d. $225.29
e. $247.82

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Wilson Dover Inc. The total value (debt plus equity) of Wilson Dover Inc. is $500 million and the fa...
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