The Assets of Bill's Boats Are Currently Worth $47,600

question 353

Multiple Choice

The assets of Bill's Boats are currently worth $47,600. These assets are expected to be worth either $45,000 or $53,000 one year from now. The company has a pure discount bond outstanding with a $50,000 face value and a maturity date of one year. The risk-free rate is 4 percent. What is the value of the equity in this firm? (Round your answer to the nearest whole dollar.)

• A) $767
• B) $948
• C) $1,624
• D) $2,120
• E) $2,419

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Definitions:

MRI

Magnetic Resonance Imaging, a diagnostic technique that uses magnetic fields and radio waves to create detailed images of the body's internal structures.

Synapses

The junctions between two neurons or between a neuron and a muscle where communication occurs through neurotransmitter release.

Axons

A part of a neuron that carries nerve impulses away from the cell body toward other neurons or muscles.

Dendrites

Branch-like extensions of neurons that receive signals from other neurons and conduct them towards the cell body.