Assume Jamestown Markets Has 500 Shares of Stock and 100

Multiple Choice

Assume Jamestown Markets has 500 shares of stock and 100 bonds outstanding.The bonds have a face value of $1,000,are convertible into 5 shares of newly issued common stock,and mature today.What is the value of this firm to its shareholders if the total value of the firm is $184,500? What if the value is $225,000?

A) $0; $125,000
B) $84,500; $112,500
C) $92,250; $112,500
D) $84,500; $125,000
E) $92,250; $125,000