What is the value of the equity in this firm

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Reference no: EM132070196

The assets of Uptown Stores are currently worth $284,000. These assets are expected to be worth either $275,000 or $300,000 one year from now. The company has a pure discount bond outstanding with a $280,000 face value and a maturity date of one year The risk-free rate is 4.1 percent. What is the value of the equity in this firm?

Reference no: EM132070196

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