Frostbite Thermalwear has a zero coupon bond issue outstanding with a face value of $30,000...
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Frostbite Thermalwear has a zero coupon bond issue outstanding with a face value of $30,000 that matures in one year. The current market value of the firms assets is $36,400. The standard deviation of the return on the firms assets is 53 percent per year, and the annual risk-free rate is 5 percent per year, compounded continuously. Based on the BlackScholes model, what is the market value of the firms equity and debt? What is
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