What is the value of this firm to its shareholders

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Reference no: EM131340379

The Window Store will have a value of $163,000 if the economy does well this coming year and a value of $142,000 if the economy does poorly. The probability of a good economy is 55 percent. The firm owes its bondholders $54,000. The firm will only operate for one more year. What is the value of this firm to its shareholders?

$99,550

$100,450

$98,500

$153,550

$154,450

Reference no: EM131340379

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