3. The Smell Fresh Kitty Litter Company has assets of $10 million, liabilities of $4 million, and 2 million shares outstanding. Assuming creditors are paid in full prior to stockholders receiving any money, what is the maximum amount the stockholders would receive in a bankruptcy settlement? What is the amount per share they would receive?

11)

Use these data to answer the questions that follow. 1. If the S\&P 500 goes up by 15 percent, how much should the stocks of Savoy, Hokie, Alison, and Expo change in value? 2. If the stock market drops by 10 percent, which one of these stocks should outperform the others? Why