Multiple Choice
Martha B's has total assets of $1,750. These assets are expected to increase in value to either $1,800 or $2,400 by next year. The company has a pure discount bond outstanding with a face value of $2,000.This bond matures in one year. Currently,U.S. Treasury bills are yielding 6%. What is the value of the equity in this firm?
A) $16.98
B) $34.59
C) $36.67
D) $37.08
E) $51.89
Correct Answer:
Verified
Correct Answer:
Verified
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