Question 5. (20 points) Faribeau Company's balance sheet and income statement are shown below (in millions of dollars). The ompany and its creditors have agreed upon a voluntary reorganization plan. In this plan, each share ofthe S2 preferred will be changed for one share of $1.00 preferred with a par value of $25 plus one 11% subordinated income debenture with a par value of S2s. The SA 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 Net fixed assets Advance payments S2 preferred stock, sso 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 otal assets Total claims