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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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Perez, Inc. owns 80% of Senior, Inc. During Year 1, Perez sold goods with a 40% gross profit to Senior. Senior sold all of these
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B) Sales and cost of goods sold should be reduced by the intercompany sales.

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2 years ago
Dye Trucking raised $85 million in new debt and used this to buy back stock. After the recap, Dye's stock price is $8.50. If Dye
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