Wicker Importers Has Total Assets of $2,860

question 49

Multiple Choice

Wicker Importers has total assets of $2,860. These assets are expected to increase in value to either $2,900 or $3,200 by next year. The company has a pure discount bond outstanding with a face value of $3,000. This bond matures in one year. Currently, Treasury bills are yielding 5 percent. What is the value of the equity in this firm?

• A) $65.40
• B) $133.33
• C) $140.00
• D) $190.48
• E) $200.00

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Definitions:

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