2.Chapter 11 When the Master Printing Company filed for bankruptcy, it filed under Chapter 11 of the U.S. bankruptcy code. Key information is shown here: Assets Claims Mortgage bonds $27,000 Senior debentures 12,100 Junior debentures 8,500 Going concern value $37,500 Book equity −10,100 As a trustee, what reorganization plan would you accept?
2.Chapter 11 When the Master Printing Company filed for bankruptcy, it filed under Chapter 11 of the U.S. bankruptcy code. Key information is shown here:
|
Assets |
Claims |
||
|
|
|
Mortgage bonds |
$27,000 |
|
|
|
Senior debentures |
12,100 |
|
|
|
Junior debentures |
8,500 |
|
Going concern value |
$37,500 |
Book equity |
−10,100 |
As a trustee, what reorganization plan would you accept?
INTERMEDIATE(Questions 3–4)
3.Z-Score Fair-to-Midland Manufacturing, Inc. (FMM), has applied for a loan at True Credit Bank. Jon Fulkerson, the credit analyst at the bank, has gathered the following information from the company’s financial statements:
|
Total assets |
$115,000 |
|
EBIT |
7,900 |
|
Net |
4,100 |
|
Book value of equity |
23,000 |
|
|
19,600 |
|
Sales |
112,000 |
The stock price of FMM is $31 per share and there are 7,800 shares outstanding. What is the Z-score for this company?
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