Bart's Mart Will Have a Value of $41,000 If the Economy

Multiple Choice

Bart's Mart will have a value of $41,000 if the economy does well this next year and a value of $32,000 if the economy does poorly.The probability of a good economy is 65 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) $24,500
B) $14,650
C) $37,850
D) $36,500
E) $25,850