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Nam e______________________________________ Final Examination FINC 5880 Session 9 Question 5. (20 point s) Pierr e Im por ts will be liquidated. Its current balance sheet is shown below. Curr ent assets are sold for $600,000 and fixed assets are sold for $1,000,000. All fixed assets ar e pledged as collat eral for all mor tgage bonds. Subor dinated debentures ar e subordinate only to not es payable. Tr ustee costs are $100,000. Balance Sheet Before Default Curr ent Assets Net fixed asset s 1200000 1800000 Total assets 3000000 Account s payable Accr ued taxes Accr ued wages Not es payable Total cur rent liabilities First -mor tgage bonds Second-mor tgage bonds Debent ur es Subordinated debent ur es Com mon stock Retained ear nings Total claim s a. How m uch will SHs receive? b. How much will m ort gage bondholders r eceive? c. How much will prior it y creditor s r eceive? d. Identify the r em aining gener al cr editor s. How m uch will each receive before subor dinat ion adj ustm ent a nd aft er adjust ment? 400000 80000 60000 60000 600000 900000 400000 500000 300000 200000 100000 3000000