(Answered) Problem regarding the firm market value

Finance

Problem: A firm has the following book-value balance sheet; Debt =$2,000, Common Stock ($1 par)= 484 and Retained Earnings = $22,000. The book value of assets is the total of Debt, Common Stock and Retained Earnings. The firm's bonds are currently selling for $1,277 and the firm's stock is currently selling for $46. The firm's tax rate is 32.

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Question: What is the firm's market value? Support your statements with examples.

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