1. A firm in financial distress that reorganizes through the bankruptcy process:
will continue to operate as a going concern throughout the entire process.
must only have the reorganization plan approved by its primary creditor.
must file a reorganization plan within 90 days of filing the bankruptcy petition.
cannot issue new securities to either creditors or shareholders.
2. For an 18-year fixed payment loan for $200,000 with an annual interest rate of 5.20% and making QUARTERLY payments, what percent of your first payment would apply to the principal?
38.16%
45.87%
39.45%
51.17%