1. What are the responsibilities of Marketing and Advertising Department?
What should they do and create?
2. The current market value of the assets of Smethwell, Inc. is $84 million, with a standard deviation of 13 percent per year. The firm has zero-coupon bonds outstanding with a total face value of $42 million. These bonds mature in 2 years. The risk-free rate is 4 percent per year compounded continuously. What is the value of d1?
4.60
4.68
4.52
4.30
4.36