The current market value of the assets of Nano Tek is $19.5 million.The market value of the equity is $7.5 million.The risk-free rate is 4.5 percent and the outstanding debt matures in 5 years.What is the market value of the firm's debt?
A) $8.50 million
B) $9.98 million
C) $12.00 million
D) $19.42 million
E) $23.84 million
Correct Answer:
Verified
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