Maggy recently purchased one share of common stock in Company X for $34.78. She had been thinking about buying one of the companys bonds.* Company X is a manufacturer of medically questionable devices it claims will rid the human body of all viruses. The business is valued at $950,000 and has a capital structure consisting of $575,000 of debt, $55,000 of preferred stock, and 10,000 shares of common stock issued and 9,200 shares of common stock outstanding. Company X also has a cash balance of $12,000. Unfortunately, within 24 hours of Maggys purchase of the share of common stock, Company X was sued for $7 quattuorvigintillion (thats a 7 followed by 75 zeros). Exactly seven years ago today, Company X issued $100 million of 10-year bonds at the prevailing interest rate of 10.0%; they mature three years from today

1. If the Enterprise Value of Company X is $930,000, what is the companys Equity Value?