1. Leth Company is currently undergoing liquidation proceedings and is consulting with potential buyers about the amount it can recover from the sale of its assets with book value of P7,000,000. Based on the quotations, the assets can fetch price of P6,000,000 if it will be sold within one year as negotiations and bidding will allow interested buyers to compete for the purchase. An interested buyer is willing to pay for P4,000,000 to purchase the assets now. Leth Company has liabilities to settle amounting to P2,000,000. How much is the orderly liquidation value of Leth Company? 2. Refer to Leth Company, how much is the forced liquidation value of Leth Company? 3. Tang Mining is considering the acquisition of Zang Mining at a cash price of P6,000,000. The primary motivation for Tang's purchase of Zang is for a special piece of drilling equipment that it believes will generate after-tax cash flows of P2,000,000 per year during the next 5 years. Zang Mining has liabilities of P9,000,000 and Tang estimates that it can sell the remaining assets at P6,500,000. Tang will use a 20 percent cost of capital for evaluating the acquisition. What is the net value of the special drilling equipment? 4. The VC Corporation is not going well, and the shareholders have decided to liquidate the business. The corporation reported a cash of P50,000 and a building valued at P800,000. They owe P500,000 to various creditors. Upon checking the realtors, they can sell the building at P1,000,000 based on current prices. As of the date, VC Corporation has 50,000 outstanding ordinary shares with par value of P5.00 and 10,000 outstanding preference shares with par value of P10.00 and liquidation value of P15.00. How much is the liquidation value of VC Corporation? 5. Refer to VC Corporation, how much is the liquidation value per share of ordinary shares