Proctor Power has fixed assets worth $215 million and net working capital worth $115 million. It is financed partly by equity and partly by three issues of debt. These consist of $235 million of First Mortgage Bonds secured only on the company’s fixed assets, $115 million of senior debentures, and $135 million of subordinated debentures. If the debt were due today, how much would each debt holder be entitled to receive?
Senior debentures?
Subordinated debentures