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Adept IncIs Currently Valued at $145,700 in a Boom and $75,200

Question 32

Multiple Choice

Adept Inc.is currently valued at $145,700 in a boom and $75,200 in a recession.The chance of either economic state occurring is 50 percent.The firm owes $85,000 to its debt holders.What is the value of the firm to the shareholders in a recession?


A) $22.50
B) $55.00
C) $27.50
D) −$10.00
E) $0

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