Liquidation based Valuation WWW Inc. Recently has had financial difficulty and is being liquidated. The firm has a the liquidation value of P2,000,000 – P800,000 from the fixed assets that served as collateral for the mortgage bonds and P1,200,000 from all other assets ( all prior claims have been satisfied) The The firm current capital structure is as follows: Unsecured bonds - P1,000,000 Mortgaged bonds - P800,000 Preference shares - P200,000 Ordinary shares - P500,000 How much will the ordinary shareholders from the Liquidation?
Liquidation based Valuation WWW Inc. Recently has had financial difficulty and is being liquidated. The firm has a the liquidation value of P2,000,000 – P800,000 from the fixed assets that served as collateral for the mortgage bonds and P1,200,000 from all other assets ( all prior claims have been satisfied) The The firm current capital structure is as follows: Unsecured bonds - P1,000,000 Mortgaged bonds - P800,000 Preference shares - P200,000 Ordinary shares - P500,000 How much will the ordinary shareholders from the Liquidation?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Liquidation based Valuation
WWW Inc. Recently has had financial difficulty and is being liquidated. The firm has a
the liquidation value of P2,000,000 – P800,000 from the fixed assets that served as collateral for the
mortgage bonds and P1,200,000 from all other assets ( all prior claims have been satisfied) The
The firm current capital structure is as follows:
Unsecured bonds - P1,000,000
Mortgaged bonds - P800,000
Ordinary shares - P500,000
How much will the ordinary shareholders from the Liquidation?
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