Declare bankruptcy, Company X has issued $200,000 in bonds

Declare bankruptcy

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Reference no: EM131535708

Company X has issued $200,000 in bonds but it has to declare bankruptcy. The only valuable asset of the company is the HQ building with a market value of $180,000. Which statement is correct: 1) Bondholders and common stock holders will divide $180,000. 2) Because the company is bankrupt bondholders recieve nothing and common stockholders recieve $180,000. 3) Bondholders recieve $180,000 from the company and $20,000 from shareholders. 4) Bondholders recieve $180,000 and common stock holders receive nothing.

Reference no: EM131535708

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