1. Fill LLL had the following values for EBIT, Taxes and depreciation fotr this year.

EBIT 23,000,000

Taxes 8,000,000

Depreciation 3,000,000

Firm LLLS Operating Net Cash Flow is

1. 18,000,000
2. 12,000,000
3. 20,000,000
4. 15,000,000

2.Firm CDE had total fixed assets, current Assets and current liabilities for this year for this year and las This year Last year Total Fixed Assets 33,000,000 27,000,000

Currents assets 5,000,000 3500,000 Currents liabilities 3,000,000 2,000,000 Firm CDE had the following values for EBIT, taxes and depreciation for this year. This Year EBIT 23,000,000 Taxes 8,000,000 Depreciataion 3,000,000 Assume that Depreciation is a capital expenditure a.5,500,000

b.9,000,000 c.11,500,00 d.8500,000 3. Firm LLL had the following values for EBIT, taxes and depreciation for this year. this year Ebit 23,000,000 Taxes 8,000,000 Depreciation 3.000,000 a.18,000,000

b.12,000,000 c.20,000,000

d. 15,000,000

4. A firm currently undergoing chapter 7 bankruptcy had previously sold a 10,000 mortgage bond collateralized with a parcel of land. The parcel of statements is correct? A. The bondholder receives new equity in the amount of 2,000 b. The 8,000 proceeds from he property sale goes directly to the bondholder c. The bondholder loses the claim to the 2,000 difference between the 10,000 that was initially owned and the 8,000 proceds from the property sale.

D. The 8,000 procedd from the property sales goes into a fund used to settle all creditor claims.

5. Firm A, Under chapter 11 bankruptcy proceedings has an esteemed going-concern reorganization value of 8.0 million. The las pre-bankruptcy balance sheet of the firm below. This shows old capital structure . Assume that there are no offer claims for any party Las re-bankypty balance sheet Assets Currents Assets 5,000,000 Food Assests 10,000,000 Total Assets 15,000,000 Liabilities and NET worth Senior Debts 3,000,000 Sublimated debts 7,000,000 common Stockholders equity 5,000,000 Total Liabilities and net WORTH 15,000,000 Assume that the reorganized new capital structure must be 40% debt and 60% common equity with 2,000,000 of the new debts subordinated to senior debts. After the fair distribution of the new secuties under the reorganization:

a. The old senior debts of 3,000,000 in the last pre-bankruptcy balance sheet will, after reorganization, receive (among others) new subordinated debt of 2,000,000

b. The old common stockholders equity of 5,000,000 in the last pre- bankruptcy balance will ,after reorganization, receive new common stockholders equity of 4,800,000

c. The old subordinated debts of 7,000,000 in the last pre-bankruptcy balance will, after reorganization, receive (among other)new subordinated debits of 200,000.

d. The old subordinated debts of 7,000,000 in the last pre- bankruptcy balance sheet will, after reorganization, be fully satisfied