The value of a company’s equity is $2 million and the volatility of its equity is 50%.The debt that will have to be repaid in one year is $5 million. The risk-free interestrate is 4% per annum. Use Merton’s model to estimate the probability of default.

Found something interesting ?

• On-time delivery guarantee
• PhD-level professional writers
• Free Plagiarism Report

• 100% money-back guarantee
• Absolute Privacy & Confidentiality
• High Quality custom-written papers

Grab your Discount!

25% Coupon Code: SAVE25
get 25% !!