PRIN.OF CORPORATE FINANCE
13th Edition
ISBN: 9781260013900
Author: BREALEY
Publisher: RENT MCG
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Chapter 32, Problem 16PS
a)
Summary Introduction
To determine: Whether the statement is true or false.
b)
Summary Introduction
To determine: Whether the statement is true or false.
c)
Summary Introduction
To determine: Whether the statement is true or false.
d)
Summary Introduction
To determine: Whether the statement is true or false.
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Which of the following statements regarding bankruptcy is not true?
A. Companies can be forced into involuntary bankruptcy by the creditors.
B. Companies cannot be forced into involuntary bankruptcy by the creditors.
C. Bankruptcy can result in a company liquidating its assets with the distribution of those proceeds to creditors.
D. Bankruptcy can result in financial reorganization and continued existence.
Which of the following liquidating dividend is not legal?
a. Liquidating dividend of a continuing merchandising corporation
b. Liquidating dividend of a mining corporation
c. Liquidating dividend of a wasting asset corporation
d. Liquidating dividend of a corporation at the state of bankruptcy
4.
Which statement is false concerning a Chapter 11 reorganization? a. b. C. d. The firm is allowed to remain in possession of its assets. Proceedings begin when the debtor firm files a petition with the bankruptcy court. Once confirmed, the plan of reorganization binds all parties. Creditors may agree to a longer payment period but do not settle for partial payment. a. answer a b. answer b c. answer c O d. answer d
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PRIN.OF CORPORATE FINANCE
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