The assets of Blue Light Specials are currently worth €2,100.These assets are expected to be worth either €1,800 or €2,300 one year from now.The company has a pure discount bond
Outstanding with a €2,000 face value and a maturity date of one year.The risk-free rate is 5%.What
Is the value of the equity in this ﬁrm?

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The Answer of The assets of Blue Light Specials are currently worth €2,100.These assets are expected to be worth either €1,800 or €2,300 one year from now.The company has a pure discount bond
Outstanding with a €2,000 face value and a maturity date of one year.The risk-free rate is 5%.What
Is the value of the equity in this ﬁrm?

The Assets of Blue Light Specials Are Currently Worth €2,100