In a Chapter 7 liquidation, the situation for a firm after the required payments of...
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In a Chapter 7 liquidation, the situation for a firm after the required payments of the bankruptcy fees, the receipts on the collateral for the secured bond payments, and wages and taxes, and any other higher priority liabilities, is as follows. Remaining proceeds ($) Net after bankruptcy fees, secured bond payment, and wages and taxes 20,000,000 Accounts payable Notes payable Secured bond as general claim Debentures Subordinated debentures Total Remaining Claims ($) 8,000,000 6,000,000 10,000,000 20,000,000 6,000,000 50,000,000 In the final settlement of the remaining claims, what is the amount that the Subordinated Debentures will receive? O a. $8,000,000 O b.510,400,000 OC. $2.400,000 d. $0, zero
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