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miskamm [114]
2 years ago
13

Acquiring Corporation transfers $1 million of its voting common stock and $100,000 cash to Target Corporation in exchange for 90

% of Target's assets. The assets retained by Target are used to settle its liabilities. Target then distributes the Acquiring stock and cash received to its shareholders in exchange for all their Target shares. Target then liquidates. This restructuring qualifies as a:
Business
1 answer:
VladimirAG [237]2 years ago
8 0

Answer:

Type C” reorganization

Explanation:

The restructuring qualifies as “Type C” reorganization because minimum 80% of assets of Target are obtained with Acquiring stock. At least 90% of the net assets and 70% of the gross assets are transferred from Target for Acquiring stock of voting. The exchange does not qualifies as a “Type A” as none of the liabilities are assumed by Acquiring. Therefore, the restructuring qualifies as “Type C” reorganization.

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Answer:

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3 years ago
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MA_775_DIABLO [31]

Answer:

Subordinated bonds, also known as subordinated debts, is an unsecured loan or bond that ranks below other, more senior loans or securities with the respect to claims on assets or earnings. Generally, subordinated bonds are debts that can be added to preferred stocks. Preferred stocks can be viewed as long- term investments, but are generally more risky because they are more sensitive to interest- rate risk if the rates rise. If they rise, then the price of the preferred stocks may fall and can fall lower than the price of short- term bonds. The difference between subordinated bonds and senior bonds is the priority in which the debt claims are paid. If one has to file bankruptcy or face liquidation, senior debts is paid back before the subordinate debt. Once the senior debt is completely paid back, then the subordinate debt starts being repaid.

Explanation:

7 0
3 years ago
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