Question 5. (20 points) Faribeau Company's balance sheet and income statement are shown below (in millions of dollars). The company and its creditors have agreed upon a voluntary reorganization plan. In this plan, each share of the $2 preferred will be exchanged for one share of S1.00 preferred with a par value of S25 plus one 11% subordinated income debenture with a par value of $25. The $4 preferred issue will be retired with cash. The company's tax rate is 20 percent. Balance Sheet prior to Reorganization Current Assets 100 Current liabilities 112 Net fixed assets Advance payments $2 preferred stock, $50 par value (1,000,000) shares $4 preferred stock, no par, callable at 50 (80,000 shares) Common stock, $0.10 par value (15,000,000) shares Retained earnings 212 Total assets Total claims 90 50 50 212