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DaniilM [7]
3 years ago
14

Suppose Tefco Corp. has a value of ​$100100 million if it continues to​ operate, but has outstanding debt of ​$120120 million th

at is now due. If the firm declares​ bankruptcy, bankruptcy costs will equal ​$2020 ​million, and the remaining ​$8080 million will go to creditors. Instead of declaring​ bankruptcy, management proposes to exchange the​ firm's debt for a fraction of its equity in a workout. What is the minimum fraction of the​ firm's equity that management would need to offer to creditors for the workout to be​ successful?
Business
1 answer:
bazaltina [42]3 years ago
4 0

Answer:

The minimum fraction is 80%

Explanation:

Creditors receive 80 million in bankruptcy since if there is bankruptcy, the bankruptcy cost is $20m while the other $80m is received by creditors, so they need to receive at least this much. Therefore, the minimum fraction of the​ firm's equity that management would need to offer to creditors for the workout to be​ successful is 80%. Tefco could offer its creditors 80% of the firm in a workout.

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Tax preparers who obtain written conflict of interest waivers from clients are required to retain the document for at least:____
sertanlavr [38]

Answer:

The correct answer is: 36 months or 3 years.

Explanation:

The Department of Treasury Circular 230 establishes the regulations for all those professionals who represent individuals before the Internal Revenue Service (<em>IRS</em>) such as <em>lawyers </em>and <em>accountants</em>. In section 10.29 there is a retention requirement in front of conflict of interest that implies waivers or consents to be retained by the tax professional for <em>3 years post-representation</em> and made available to the IRS if requested.

4 0
3 years ago
How do i make a freinds request on here
sattari [20]
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5 0
3 years ago
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Do you consider it morally and ethical wrong to pay bribes through an agent entering an international market faster, receiving n
Ghella [55]

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yes I do believe it is ethically and morally wrong to pay bribes

3 0
1 year ago
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An oligopoly exists when a firm offers a product that has no close substitutes, making the firm the sole source of supply.
Mademuasel [1]

Answer:

B) False

Explanation:

That would be a monopoly (only one supplier).

An oligopoly is a market where there are very few suppliers, and competition is very limited since the barriers to entry are very significant.

For example, the automobile industry is an oligopoly. There are only a few car manufacturers in the world, and they all are very large corporations. It costs hundreds of millions of dollars to introduce a new car model, and every time that happens, the corporations must carry on expensive advertising and promotional campaigns.

4 0
3 years ago
If your answer is zero, enter "O". a. Under a 2017 divorce agreement, Joan is required to pay her ex-husband, Bill, $2,340 a mon
scoundrel [369]

Answer:

$2,400 in 2019 are deductible as alimony.

Step-by-step explanation:

Hillary get divorced in the year = 2016

She has to pay her ex-spouse $200 per month until her son reaches 18 years of age in 7 years.

His son will reach of the age of 18 = 2016 + 7 = 2023

She has to pay $200 till 2023 and $120 thereafter.

Her payments are deductible as alimony in 2019 would be = $200 × 12

                                                                                                 = $2,400

$2,400 in 2019 are deductible as alimony.

4 0
2 years ago
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