Suppose Hertz has $10 billion of senior bank loans outstanding and $4 billion of subordinated bonds outstanding at the time of its bankruptcy filing. Its creditors are currently in the midst of a Chapter 11 reorganization and are negotiating about the value of Hertzs assets, which determines how the reorganized firms equity will be shared between bank lenders and bondholders. All parties agree on new equity valuation pegged at $11 Billion. What stake of equity will bondholders have in new firm?

Group of answer choices

A.10/11th

B. 4/14th

C. 1/11th

D. 4/10th