What is the market value of the firm

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Bart's Mart will have a value of $41,000 if the economy does well this next year and a value of $32,000 if the economy does poorly. The probability of a good economy is 65 percent. The firm owes its bondholders $12,000. What is the market value of the firm if it only operates for one more year?

$24,500

$14,650

$37,850

$36,500

$25,850

Reference no: EM13932630

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