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Ortiz, Incorporated, is currently valued at $ 1 4 5 , 7 0 0 in a boom and $ 7 5 , 2 0 0

Ortiz, Incorporated, 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?
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$22.50
$0
$27.50
$55.00
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