Given a firm value of $V = 100$ ,debt face value of $D = 60$ ,asset volatility of $\sigma = 30 \%$ ,and a risk free rate of $r = 3 \%$ ,conditional on default,the expected recovery rate in the Merton model for debt of maturity five years will be:
A)40%
B)50%
C)60%
D)70%

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The Answer of Given a firm value of $V = 100$ ,debt face value of $D = 60$ ,asset volatility of $\sigma = 30 \%$ ,and a risk free rate of $r = 3 \%$ ,conditional on default,the expected recovery rate in the Merton model for debt of maturity five years will be:
A)40%
B)50%
C)60%
D)70%

Given a Firm Value Of V=100V = 100V=100 ,Debt Face Value Of

Given a Firm Value Of $V = 100$ ,Debt Face Value Of