When a firm has risky debt its equity can be viewed as an
When a firm has risky debt, its equity can be viewed as an option on the total value of the firm with an exercise price equal to the face value of the debt.
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when a firm has risky debt its equity can be viewed as an option on the total value of the firm with an exercise price
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This week's discussion is designed to help you create a glossary for yourself. Save this glossary for your future work.