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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

  • $57,680

  • $54,650

  • $57,040

  • $56,560

  • $55,850

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