The Assets of Uptown Stores Are Currently Worth $136,400

question 85

Multiple Choice

The assets of Uptown Stores are currently worth $136,400. These assets are expected to be worth either $120,000 or $150,000 one year from now. The company has a pure discount bond outstanding with a $130,000 face value and a maturity date of one year. The risk-free rate is 4.3 percent. What is the value of the equity in this firm?

• A)$11,920
• B)$14,232
• C)$19,507
• D)$21,347
• E)$26,408

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Definitions:

Situational Factors

External or contextual conditions that influence the outcome of an individual's behavior or an organization's performance.

Role Perceptions

An individual's understanding of their responsibilities, duties, and expectations within their role in an organization or team.

Agreeableness

A personality trait characterized by compassion and cooperativeness towards others, reflecting a disposition towards harmony and social compatibility.

Conscientiousness

A personality trait characterized by organization, dependability, discipline, and a strong sense of duty.