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David, Thank you!! I absolutely agree with 100% with what you said. I tried all of the exact same things trying to tie back to what he said. I had noticed that you tied the DD, so I assumed that you backed into V(t), but didn't want to go too far before I got myself in trouble. I have been...

All, I am trying to follow the 6.c.1 Merton worksheet. Specifically, I am trying to tie the numbers back to the de Servigny book p. 69, which is the first column in the worksheet. In the book, they describe equity value as $3bn, threshold at $10bn, mu is 5%, and sigma is 9.6%. Most of these...