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Unlucky Corp. is a corporation that unfortunately is not able to pay its debt obligations. The total value of Unlucky is $2 million. Unlucky. Unlucky
Unlucky Corp. is a corporation that unfortunately is not able to pay its debt obligations. The total value of Unlucky is $2 million. Unlucky. Unlucky owes it senior creditors $1.75 million and owes junior creditors $2 million. If Unlucky enters bankruptcy and its assets are liquidated, how much will the senior creditors receive? How much will the junior creditors receive? How much will the shareholders of Unlucky receive?
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