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In Emerging from Reorganization Under Chapter 11 of the Bankruptcy

Question 60

Multiple Choice

In emerging from reorganization under Chapter 11 of the bankruptcy laws, a company is expected to have total future cash flows from its restructured operations of $6,000,000 (discounted present value = $2,500,000) . In addition, excess assets, not needed for future operations, have a carrying value of $400,000 and are expected to be sold for $250,000. The company's reorganization value is:


A) $6,000,000
B) $6,250,000
C) $2,750,000
D) $2,900,000

Correct Answer:

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