What is the value of the equity in the firm

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Problem 1: Giorgio Armani's has total assets of $1,800. These assets are expected to increase in value to either $1,850 or $2,500 by next year. The company has a pure discount bond outstanding with a face value of $2,300. This bond matures in one year. Currently, U.S. Treasury bills are yielding 6%. What is the value of the equity in this firm?

Reference no: EM132931512

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