Part Two: Circular File's book value and market value balance sheets a Net working capital Fixed assets Total assets $20 $80 $100 50 Bonds Common stock 50 Total Liabilities $100 Net working capital Fixed assets Total assets $20 s10 S30 25 Bonds Common stock Total Liabilities $30 The market value of bonds is less than their face value of $50. Sothe firm distress. List whether bondholders, shareholders, or both, gain or lose from the maneuvers? a. Circular scrapes up $5 in cash and pays a cash dividend. (4 points) is in financial the following b. Circular halts operations, sells its fixed assets, and converts net working capital into $20 cash. Unfortunately the fixed assets fetch only $6 on the secondhand market. The $26 cash is invested in Treasury bills. (4 points) The lenders agree to extend the maturity of their loan from one year to two in order to give Circular a chance to recover.(4 points) c