Martha B's has total assets of €1,750.These assets are expected to increase in value to either €1,800 or €2,400 by next year.The company has a pure discount bond outstanding with a face value of €2,000.This bond matures in one year.Currently,Treasury bills are yielding 6%.What is the value of the equity in this firm?
A) €16.98
B) €34.59
C) €36.67
D) €37.08
E) €51.89
Correct Answer:
Verified
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