Bart's Mart Will Have a Value of $59,000 If the Economy

Multiple Choice

Bart's Mart will have a value of $59,000 if the economy does well this next year and a value of $52,000 if the economy does poorly.The probability of a good economy is 72 percent.The firm owes its bondholders $12,000.What is the market value of the firm if it only operates for one more year?

A) $57,680
B) $54,650
C) $57,040
D) $56,560
E) $55,850