The total value (debt plus equity) of Wilson Dover Inc. is $500 million and the face value of its 1 - year coupon debt is $200 million. The volatility (\ sigma) of Wilson Dover's total value is 0.60, and the risk free rate is 5%. Assume that N(d1) = 0.9720 and N(d2) = 0.9050.

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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The total value (debt plus equity) of Wilson Dover Inc. is $500 million and the face value of its 1 - year coupon debt is $200 million. The volatility (\ sigma) of Wilson Dover's total value is 0.60, and the risk free rate is 5%. Assume that N(d1) = 0.9720 and N(d2) = 0.9050. Refer to the data for Wilson Dover Inc. What is the value (in millions) of Wilson Dover's debt if its equity is viewed as an option?
a. $247.82

b. $186.19

c. $167.57

d. $204.81

e $225.29

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