Elixir Corporation has just filed for bankruptcy. Elixir is a holding company whose assets consist of real estate worth $240 million and 100% of the equity of its two operating subsidiaries. It is financed partly by equity and partly by an issue of $560 million of senior collateral trust bonds that are just about to mature. Subsidiary A has issued directly $480 million of debentures and $31 million of preferred stock. Subsidiary B has issued $260 million of senior debentures and $140 million of subordinated debentures. As assets have a market value of $580 million and Bs have a value of $316 million. How much will each security holder receive if the assets are sold and distributed strictly according to precedence?

Payoff: (I can't seem to figure out the correct amount for the trust bond)

a. Debenture = 480 million

b. Senior debenture = 260 million

c. Subordinated debenture = 56 millio

d. Trust bond= ?

e. Preferred stock = 31 million