4) Bowie Enterprises, is currently valued at $145,700 in a boom and $75,200 in a recession. The chance of either economic state occurring is 50 percent. The firm owes $85,000 to its debtholders. What is the value of the firm to the shareholders in a recession? A) SO B) $55.00 C) $22.50 D) $27.50 E) -$10.00

4) Bowie Enterprises, is currently valued at $145,700 in a boom and $75,200 in a recession. The chance of either economic state occurring is 50 percent. The firm owes $85,000 to its debtholders. What is the value of the firm to the shareholders in a recession? A) $0 8) $55.00 C) $22.50 D) $27.50 E) $10.00