Frostbite thermalwear has a zero coupon bond issue outstanding with a face value of $44,000 that matures in one year. the current market value of the firm’s assets is $47,600. the standard deviation of the return on the firm’s assets is 34 percent per year, and the annual risk-free rate is 4 percent per year, compounded continuously. a. based on the black–scholes model, what is the market value of the firm's equity and debt? (do not round intermediate calculations and round your answers to 2 decimal places, e. g., 32.16.) market value equity $ debt $ b. what is the firm's continuously compounded cost of debt? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.) cost of debt %

Christopher kim, cfa, is a banker with batts brothers, an investment banking firm. kim follows the energy industry and has frequent contact with industry executives. kim is contacted by the ceo of a large oil and gas corporation who wants batts brothers to underwrite a secondary offering of the company's stock. the ceo offers kim the opportunity to fly on his private jet to his ranch in texas for an exotic game hunting expedition if kim's firm can complete the underwriting within 90 days. according to cfa institute standards of conduct, kim: a) may accept the offer as long as he discloses the offer to batts brothers.b) may not accept the offer because it is considered lavish entertainment.c) must obtain written consent from batts brothers before accepting the offer.