Mostly Right, Inc

Multiple Choice

Mostly Right, Inc. has assets that are currently valued at $1,500. One year from now, the assets are expected to be worth either $1,300 or $1,900. The company also has a zero coupon bond issue with a face value of $1,400 that is due in one year. The risk-free rate of return is 4%. What is the value of the equity in Mostly Right, Inc.?

A) $0
B) $48.33
C) $166.67
D) $208.33
E) $250.00