The Window Store Will Have a Value of $139,000 If

Multiple Choice

The Window Store will have a value of $139,000 if the economy does well this coming year and a value of $121,000 if the economy does poorly.The probability of a good economy is 68 percent.The firm owes its bondholders $63,000.The firm will only operate for one more year.What is the value of this firm to its shareholders?

A) $68,500
B) $70,240
C) $70,450
D) $73,550
E) $74,660