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Suppose you valued a firm and came up with the value of equity (per share) of 9.50. The probability of financial distress is 10 percent

Suppose you valued a firm and came up with the value of equity (per share) of 9.50. The probability of financial distress is 10 percent in which case, equity holders will recover 2.0 per share. What is the value per share under this scenario?

a. 2.00

b. 9.30

c. 8.75

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