The Assets of Uptown Stores Are Currently Worth $346,000

The assets of Uptown Stores are currently worth $346,000. These assets are expected to be worth either $320,000 or $365,000 one year from now. The company has a pure discount bond outstanding with a $350,000 face value and a maturity date of one year. The risk-free rate is 3.9 percent. What is the value of the equity in this firm?

A) $9,915
B) $12,671
C) $9,507
D) $11,347
E) $10,015