Mostly Right, Inc

question 46

Multiple Choice

Mostly Right, Inc. has assets that are currently valued at $1,500. One year from now, the assets are expected to be worth either $1,300 or $1,900. The company also has a zero coupon bond issue
With a face value of $1,400 that is due in one year. The risk-free rate of return is 4%. What is the
Value of the equity in Mostly Right, Inc.?

• A) $0
• B) $48.33
• C) $166.67
• D) $208.33
• E) $250.00

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