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4 (4 points) Elijah Corporation has an estimated liquidation value (after all prior claims have been satisfied) of $3,000,000, $1,500,000 from fixed assets, and $1,500,000
4 (4 points) Elijah Corporation has an estimated liquidation value (after all prior claims have been satisfied) of $3,000,000, $1,500,000 from fixed assets, and $1,500,000 from current assets. The firm's value as a going concern is $4,000,000. The firm's current capital structure is as follows: Debentures Mortgage bonds* $5,000,000 2,000,000 Preferred stock 1,000,000 Common stock 4,000,000 Total $12,000,000 *Secured by fixed assets. Prepare a table indicating the amount, if any, to be distributed to each claimant, in the event of liquidation
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