For next year,there is a 60 percent chance the economy will do well and Importers Unlimited will have a firm value of $321,000.If the economy tanks,the firm's value will decline to $241,000.The firm owes its bondholders $250,000.What is the value of this firm to its shareholders?
A) $42,600
B) $39,000
C) $71,000
D) $46,400
E) $139,000
Correct Answer:
Verified
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