Question
Mondesto Company has the following debts: Unsecured creditors $ 255,000 Liabilities with priority 135,000 Secured liabilities: Debt 1, $260,000; value of pledged asset 205,000 Debt
Mondesto Company has the following debts:
| Unsecured creditors | $ | 255,000 | |
| Liabilities with priority | 135,000 | ||
| Secured liabilities: | |||
| Debt 1, $260,000; value of pledged asset | 205,000 | ||
| Debt 2, $220,000; value of pledged asset | 125,000 | ||
| Debt 3, $145,000; value of pledged asset | 190,000 | ||
The company also has a number of other assets that are not pledged in any way. The creditors holding Debt 2 want to receive at least $182,000.
For how much do these free assets have to be sold so that the creditors associated with Debt 2 receive exactly $182,000?
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Contemporary Financial Management Fundamentals
Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
1st Edition
0324015771, 9780324015775
