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Hurrah, Inc. recently has had financial difficulty and is being liquidated by the Federal Bankruptcy Court. The firm has a liquidation value of $1,000,000 from

Hurrah, Inc. recently has had financial difficulty and is being liquidated by the Federal Bankruptcy Court. The firm has a liquidation value of $1,000,000 from the fixed assets that served as collateral for the mortgage bonds (all prior claims have been satisfied). The firm's current capital structure is shown below. How much will the common stockholders receive in the liquidation?

Source of Capital

Amount

Unsecured bonds

$500,000

Mortgage bonds

400,000

Preferred stock

100,000

Common stock

500,000

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