What is the value of the equity in the firm

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Problem 1: Fiscal Unity Inc.'s assets are currently worth $50,800. These assets are expected to be worth either $44,000 or $55,000 one year from now. The company has a pure discount bond outstanding with a $52,000 face value and a maturity date of one year. The risk-free rate is 5 percent. What is the value of the equity in this firm?

Reference no: EM132794415

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