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What is the value of the firm to the equity holders

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A regional firm has current market valuations of $250,000 in a boom and $90,000 in a recession. The chance of a boom is 60 percent with the remainder assigned to a recession. The firm owes $115,000 to its debt holders. What is the value of the firm to the equity holders in a recession?

Reference no: EM133112035

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