WW Inc. Recently has had financial difficulty and is being liquidated. The firm has a liquidation value of Php 2,000,000 - Php800,000 from the fixed assets that served as collateral for the mortgage bonds and Php 1,200,000 from all other assets (all prior claims have been satisfied). The firm's current capital structure is as follows: Unsecured bonds - Php1,000,000 Mortgage bonds - Php800,000 Preference shares - Php200,000 Ordinary shares - Php500,000 How much will the ordinary shareholders from the liquidation?
WW Inc. Recently has had financial difficulty and is being liquidated. The firm has a liquidation value of Php 2,000,000 - Php800,000 from the fixed assets that served as collateral for the mortgage bonds and Php 1,200,000 from all other assets (all prior claims have been satisfied). The firm's current capital structure is as follows: Unsecured bonds - Php1,000,000 Mortgage bonds - Php800,000 Preference shares - Php200,000 Ordinary shares - Php500,000 How much will the ordinary shareholders from the liquidation?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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WW Inc. Recently has had financial difficulty and is being liquidated. The firm has a liquidation value of Php 2,000,000 - Php800,000 from the fixed assets that served as collateral for the mortgage bonds and Php 1,200,000 from all other assets (all prior claims have been satisfied). The firm's current capital structure is as follows:
Unsecured bonds - Php1,000,000
Mortgage bonds - Php800,000
Preference shares - Php200,000
Ordinary shares - Php500,000
How much will the ordinary shareholders from the liquidation?
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