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29. In a bankruptcy proceeding, what is a cramdown?

A. The creditors force the bankrupt company to accept a reorganization plan

B. The bankruptcy judge forces the creditors to accept a reorganization plan

C. The creditors force the bankruptcy judge to accept a reorganization plan

D. The regulators force the bankrupt to accept a reorganization plan

E. None of the above

30. Which of the following are true about bankrupt firms in reorganization?

A. They may cancel their collective bargaining agreements

B. They must settle liabilities for full face value

C. They must fund all pension plans in full

D. They lose their tax loss carryforwards

E. All of the above

31. Which of the following claims has priority in a Chapter 7 bankruptcy?

A. Claims of unsecured creditors

B. Taxes legally due and owed

C. Unsecured customer deposits, not to exceed $900 each

D. Wages of not more than $2,000 per worker

E. All of the above have equal priority

32. Microsoft Corp has an Altmans Z score of 12.8. How likely is the company to go bankrupt?

A. Highly probable

B. Unsure

C. Unlikely

D. Insufficient information

E. None of the above

33. Honkaby Service Inc has a Working Capital/Total Assets ratio of 0.2, a Retained

Earnings/Total Assets Ratio of 0.1, an EBIT/Total Assets ratio of 0.25, a Market value of

equity/Book value of total liabilities ratio of 0.6, and a Sales/Total Assets ratio of 0.75. What is

Honkabys Altman Z Score?

A. 2.405

B. 2.315

C. 2.165

D. 2.795

E. None of the above

34. Using your answer to the previous question, how likely is Honkaby to go bankrupt?

A. Highly probable

B. Unsure

C. Unlikely

D. Insufficient information

E. None of the above

29. In a bankruptcy proceeding, what is a 'cramdown'? A. The creditors force the bankrupt company to accept a reorganization plan B. The bankruptcy judge forces the creditors to accept a reorganization plan C. The creditors force the bankruptcy judge to accept a reorganization plan D. The regulators force the bankrupt to accept a reorganization plan E. None of the above 30. Which of the following are true about bankrupt firms in reorganization? A. They may cancel their collective bargaining agreements B. They must settle liabilities for full face value C. They must fund all pension plans in full D. They lose their tax loss carryforwards E. All of the above 31. Which of the following claims has priority in a Chapter 7 bankruptcy? A. Claims of unsecured creditors B. Taxes legally due and owed C. Unsecured customer deposits, not to exceed $900 each D. Wages of not more than $2,000 per worker E. All of the above have equal priority 32. Microsoft Corp has an Altman's Z score of 12.8. How likely is the company to go bankrupt? A. Highly probable B. Unsure C. Unlikely D. Insufficient information E. None of the above 33. Honkaby Service Inc has a Working Capital/Total Assets ratio of 0.2, a Retained Earnings/Total Assets Ratio of 0.1, an EBIT/Total Assets ratio of 0.25, a Market value of equity/Book value of total liabilities ratio of 0.6, and a Sales/Total Assets ratio of 0.75. What is Honkaby's Altman Z Score? A. 2.405 B. 2.315 C. 2.165 D. 2.795 E. None of the above 34. Using your answer to the previous question, how likely is Honkaby to go bankrupt? A. Highly probable B. Unsure C. Unlikely D. Insufficient information E. None of the above

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