Wicker Importers has total assets of $2,860. These assets are expected to increase in value to either $2,900 or $3,200 by next year. The company has a pure discount bond outstanding with a face value of $3,000. This bond matures in one year. Currently, Treasury bills are yielding 5 percent. What is the value of the equity in this firm?
A) $65.40
B) $133.33
C) $140.00
D) $190.48
E) $200.00
Correct Answer:
Verified
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