What is the market value of the firms equity and debt, Corporate Finance

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What is the market value of the firms equity and debt

Problem

Skittles has a zero-coupon bond issue outstanding with a $10,000 face value that matures in one year. The current market value of the firm's assets is $10,900. The standard deviation of the return on the firm's assets is 31% per year, and the risk-free rate is 6% per year, compounded continuously. Based on the Black-Scholes model, what is the market value of the firm's equity and debt?

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Corporate Finance: What is the market value of the firms equity and debt

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Corporate Finance: What is the market value of the firms equity and debt

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