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Mice21 [21]
3 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]3 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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Nadusha1986 [10]

Answer:

18.24

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Return on equity = net income / average total equity

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g = 0.48 x 0.38 = 18.24%

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4 years ago
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