Liquidation based valuation Sam Company is currently undergoing a liquidation proceeding and is consulting with potential buyers about the amount it can recover from the sale of its assets with a book value of P7,000,000. Based on the quotations, the assets can fetch a price of P6,000,000. If it will be sold within one-year negotiations and bidding will allow interested buyers to compete for the purchase. An interested buyer is willing to pay P4,000,000 to purchase the asset now. Sam The company has liabilities to settle amounting to P2,000,000. How much is the orderly liquidation value of Sam Company? Based on Sam's company information. How much is the forced liquidation value of Sam Company?
Liquidation based valuation
Sam Company is currently undergoing a liquidation proceeding and is consulting with potential
buyers about the amount it can recover from the sale of its assets with a book value of
P7,000,000. Based on the quotations, the assets can fetch a price of P6,000,000. If it will be sold
within one-year negotiations and bidding will allow interested buyers to compete for the
purchase. An interested buyer is willing to pay P4,000,000 to purchase the asset now. Sam
The company has liabilities to settle amounting to P2,000,000. How much is the orderly liquidation
value of Sam Company? Based on Sam's company information. How much is the forced liquidation value of Sam
Company?
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