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Mice21 [21]
2 years ago
15

Southern Goods has an estimated going-concern value of $2 million. As a result of negotiations the firm's bankruptcy reorganizat

ion plan consists of $600,000 in new mortgage debt, $250,000 in subordinated debt, and $1,150,000 in new equity. Currently the firm has a mortgage of $823,000, other secured debt of $89,000, and unsecured debt of $1.34 million. According to the APR, what will the stockholders receive if they currently have 2 million shares with a par value of $1 each
Business
1 answer:
Alex_Xolod [135]2 years ago
7 0

Answer:

$0

Explanation:

Based on the information given what the STOCKHOLDERS RECEIVE if they currently have 2million shares with a par value of $1 each will be $0 reason been that the Stockholder claims have the LOWEST PRIORITY in a bankruptcy based on the fact that the debts amount has exceeded the firm's value which means that there is $0 amount left for current shareholders.

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You want to buy a house that costs $140,000. You have $14,000 for a down payment, but your credit is such that mortgage companie
rodikova [14]

Answer:

Kindly check explanation

Explanation:

Given the following :

Cost of house = $140,000

Down payment = $14000

Take back mortgage = 126000 = PV

Rate (r) = 5%

Yearly payment one can afford = 22000

a. If the loan was amortized over 3 years, how large would each annual payment be? Could you afford those payments?

Number of period = 3

Using the relation:

PMT = r(PV) / 1 - (1 + r)^-n

PMT = 0.05(126000) / 1 - 1.05^-3

PMT = 6300 / (1-0.8638375)

PMT = 46,268.23

He won't be able to afford it, as the monthly payment is larger than the affordable amount of $22000

b. If the loan was amortized over 30 years, what would each payment be? Could you afford those payments?

PMT = r(PV) / 1 - (1 + r)^-n

PMT = 0.05(126000) / 1 - 1.05^-30

PMT = 6300 / (1-0.2313774)

PMT = 8196.48

He would be able to afford it, as the monthly payment is lower than the affordable amount of $22000

c. To satisfy the seller, the 30-year mortgage loan would be written as a balloon note, which means that at the end of the third year, you would have to make the regular payment plus the remaining balance on the loan. What would the loan balance be at the end of Year 3, and what would the balloon payment be?

Present value of remaining balance after the 3rd year:

Present Value (PV) = PMT[(1 - (1 + r)^-n) / r]

Where

PMT = periodic payment = 8196.48

r = Interest rate = 5% = 0.05

n = number of periods = 30 - 3 = 27

PV = 8196.48[(1 - (1 + 0.05)^-27) / 0.05]

PV = 8196.48[(1 - (1. 05)^-27) / 0.05]

PV = 8196.48[0.7321516 / 0.05]

PV = 120,021.32

Balloon payment :

120,021.32 + 8196.48 = 128,217.80

4 0
2 years ago
Warranties are commonly associated with ____________ purchases.
zhuklara [117]
Warranties are commonly associated with Consumer
5 0
2 years ago
Dave Krug contributed $1,400 cash along with inventory and land to a new partnership. The inventory had a book value of $1,200 a
s2008m [1.1K]

Answer:

Partnership General Journal to record Krug Investment

Cash                $1,400   (Debit)

Inventory         $2,800  (Debit)

Land                 $5,800  (Debit)

Notes Payable $3,400  (Credit)

Krug, Capital    $5,800  (Credit)

Explanation

i. The land and inventories will be accepted at his market value.

ii. Along with cash, this are assets which enter the partnership so they are debited.

iii. The note payable decreases the Krug capital contribution. It is credited.

iv. Krug capital account balance will be to complete the entry and make debit = credit.

7 0
2 years ago
Consider a 10 year bond with a face value of $1000 that has a coupon rate of 5.3%, with semiannual payments. What is the coupon
Readme [11.4K]

Answer:

$26.5

Explanation:

the question says that the bond has a face value equal to 1000 dollars

coupon rate = 5.3%

and that the bond pays semiannually. semiannually means that it pays after 6 months.

semi annual coupon payment formula is given by = coupon rate/2 multiplied by face value

= 5.3%/2 multiplied by 1000

= 0.0265 x 1000

= $26.5

therefore from this calculation, the coupon payment on the bond is $26.5 dollars in every six months or semiannually.

8 0
2 years ago
Organizational buying criteria refer to
Korolek [52]

Answer:

The answer is: C) the objective attributes of the supplier’s products and services and the capabilities of the supplier itself.

Explanation:

Organizational buying criteria refers to the different criteria an organization's buyer must apply when deciding what products and services should be purchased. These criteria can include:

  • price
  • products' specifications, features and quality
  • lead time - delivery time
  • vendor's reputation
  • vendor's production scale
  • sales terms
4 0
2 years ago
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