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Bart's Mart will have a value of $59,000 if the economy does well this next year and a value of $52,000 if the economy does
Bart's Mart will have a value of $59,000 if the economy does well this next year and a value of $52,000 if the economy does poorly. The probability of a good economy is 72 percent. The firm owes its bondholders $12,000. What is the market value of the firm if it only operates for one more year?
Multiple Choice
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$57,680
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$54,650
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$57,040
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$56,560
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$55,850
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