A Corporation has had financial difficulty and is being liquidated. The firm has a liquidation value of P1,500,000.00 --- P700,000.00 from the fixed assets that served as collateral for the morthage bonds and PS00,000.00 form all other assets (all prior claims have been satisfied). The firm's current capital structure is as follows:
A Corporation has had financial difficulty and is being liquidated. The firm has a liquidation value of P1,500,000.00 --- P700,000.00 from the fixed assets that served as collateral for the morthage bonds and PS00,000.00 form all other assets (all prior claims have been satisfied). The firm's current capital structure is as follows:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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A Corporation has had financial difficulty and is being liquidated. The firm has a liquidation value of P1,500,000.00 --- P700,000.00 from the fixed
assets that served as collateral for the morthage bonds and P800,000.00 form all other assets (all prior claims have been satisfied). The firm's current
capital structure is as follows:
Unsecured Bonds
P200,000.00
Mortgage Bonds
700,000.00
Preferecne shares
200,000.00
Ordinary shares
500,000.00
How much will the ordinary shareholders receive from the liquidation?
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