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You have decided to model 2 potential scenarios (Good and Bad) for a firms future. The firm has $700 of debt outstanding. Given the following
You have decided to model 2 potential scenarios (Good and Bad) for a firms future. The firm has $700 of debt outstanding. Given the following information, what do you conclude to be the value of the firms equity?
| Good | Bad | |
| $1,000 | Value of firm | $500 |
| 60% | Probability of scenario | 40% |
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7 Money Rules For Life How To Take Control Of Your Financial Future
Authors: Mary Hunt
1st Edition
0800722531, 978-0800722531
