Share
Explore BrainMass

Financial Distress and Bankruptcy

Legal Issues and Bankruptcy Judges

The legal issues decided by the bankruptcy judges, such as whether certain payments are preferential, are known as: a. reorganization proceedings b.automatic stay proceedings c. preferential proceedings d. core proceedings e. reaffirmation proceedings

Which of the following must be stated in a Chapter 7 bankruptcy petition?

Which of the following must be stated in a Chapter 7 bankruptcy petition? a. for both voluntary and involuntary petitions, that debts exceed assets b. for voluntary petitions, that the debtor has debts, and for involuntary petitions, that the debtor is not paying debts as they come due c. for voluntary petitions, that de

Capital Structure, Cost of Capital

Please answer the attached. Please provide calculation and/or formula. A firm's current balance sheet is as follows: Assets $100 Debt $10 Equity $90 A. What is the firm's weighted-average cost of capital at various combinations of debt and equity, given the following information? Debt/Assets After-Tax Cost of

Types of bankruptcy

What are the differences among the types of bankruptcy? What is your opinion about the 2005 changes which made it more difficult to use Chapter 7? Is it a far balance for both creditors and debtors? Please explain your view. (300+ words)

Filing for Bankruptcy - Pros and Cons

The law firm is very concerned that the client would not be able to pay any judgment levied against it by the courts in a civil tort case. Due to recent robberies and legal troubles with the client, your company is worried that the client may have to file bankruptcy. The client has just over $400,000 in debt and is not incorpora

Explain the basic concepts surrounding bankruptcy

The law firm is in the process of purchasing a number of new company desktop computers, printers, notebook computers and servers. Your firm is planning to borrow money from a bank to complete the transaction. The IT manager who is in charge of the transaction does not understand what type of contract the company is entering into

Total Risk Affects a Firm's Production Costs

How might total risk affect a firm's production costs and its ability to sell? Give some examples of firm's in financial distress that saw their sales drop. What is the relation between the effects of total risk on a firm's sales and costs and its desire to hedge foreign exchange risk?

Ethics Article Analysis

Ethics Article Analysis. Please help with this article analysis. These objectives may have influenced financial reporting decisions that were described in the article.ethics considerations in financial management. Prepare a 350-700-word analysis of your article in which you address the following items: a.Discus

What are some of the reasons people file bankruptcy?

During the decade of the 1990s, business and personal bankruptcies soared. This happened in spite of the greatest economic boom in US history. It was also a boom time for lawyers specializing in the intricacies of bankruptcy law. In 1998, a record 1.4 million businesses and individuals filed for protection under the bankruptcy c

Bankruptcy and Reorganization

Consider the following cases on Bankruptcy and Reorganization. Petition In March 1988, Daniel E. Beren, John M. Elliot, and Edward, F. Mannino formed Walnut Street Four, a general partnership, to purchase and renovate an office building in Harrisburg, Pennsylvania. They borrowed more than $200,000 from Hamilton Bank to purch

Chapter 7 Bankruptcy

During the decade of the 1990s, business and personal bankruptcies soared. This happened in spite of the greatest economic boom in US history. It was also a boom time for lawyers specializing in the intricacies of bankruptcy law. In 1998, a record 1.4 million businesses and individuals filed for protection under the bankruptcy c

The Role of Cost Accounting in Business Planning, Control, and Decision Making

A. Assess the role of cost accounting in helping management plan, make decisions, and control the organization. b. In light of the post-Enron, Sarbanes-Oxley world, assess the role of ethics in cost accounting. c. Compare and contrast absorption and variable costing. What information does each include, and what information i

The Value of a Levered Firm: Financial Distress Costs

If the value of a levered firm is $13,000,000, and the value of corresponding unlevered firm is $12,000,000, determine the present value of financial distress costs, if the firm has $5,000,000 of debt outstanding and is in the 40 percent tax bracket. A. $500,000 B. $1,000,000 C. $3,000,000 D. $5,000,000 E. Cannot be

Reorganization, Liquidation-Bankruptcy & Financial Distress

A business can be liquidated for $700,000, or it can be reorganized. Reorganization would require an investment of $400,000. If the company is reorganized, earnings are projects to be $150,000 per year, and the company would trade at a price/earnings ratio 8.0 times. Should the company be liquidated or reorganized.

Revised Bankruptcy System

6. In April 2005 President Bush signed into law major changes to the bankruptcy system. Please review the following website at http://www.bankruptcyaction.com/bankreform.htm And post your thoughts below about whether or not you believe this change in the law is a good thing or bad thing for consumers

Settlement of claims in bankruptcy liquidation

Settlement of claims in bankruptcy liquidation. Please provide step by step work for A through F. 16A-1. The trustee in the bankruptcy settlement for Immobile Corporation lists the book values and liquidation values for the assets of the corporation. Also, liabilities and stockholders' claims are shown. Settlement of Cla

Credit and Bankruptcy: The Two-Income Trap...

This is a book review and analysis of The Two-Income Trap (which was written by Warren and Tyagi), from a consumer credit perspective. This review is property of its author and not to be plagiarized; it is made available only for study and reference purposes.

Advice on Debt

If a good friend of yours has had serious financial misfortunes lately and is unable to meet her debt payments, what advice can you give? Be sure to include the topic of bankruptcy because she has heard that it eliminates all your credit problems. In your discussion, distinguish between straight bankruptcy and a wage earner plan

Antitrust Suits

I need to find information on whether antitrust suits are helpful or detrimental to the economy. Give examples of specific antitrust suits that have been significant in their impact and outcome.

During the decade of the 1990s, business and personal bankruptcies soared. This happened in spite of the greatest economic boom in US history. It was also a boom time for lawyers specializing in the intricacies of bankruptcy law. In 1998, a record 1.4 million businesses and individuals filed for protection under the bankruptcy code, a 300 percent increase since 1980. Ninety-six percent of the filings were personal bankruptcies; however, in 1999, the number dropped 8.5 percent.

Many analysts attribute the high number of bankruptcies to aggressive credit offers by banks and, to a lesser extent, department stores. These companies lure even the most credit challenged (young people and those who have problems managing money) into accepting their credit cards, sometimes offering secured lines of credit, whe

Companies Declaring Bankruptcy

Name two firms that have recently declared bankruptcy (within 5 years) and for each firm address the following questions: -- Why did the firm declare or is declaring bankruptcy? -- Is the firm declaring under Chapter 7 or Chapter 11 of the Federal Bankruptcy Reform Act? -- Has a plan been established to reorgan

Should the petition for involuntary bankruptcy be granted?

Consider the following cases on Bankruptcy and Reorganization. Petition In March 1988, Daniel E. Beren, John M. Elliot, and Edward, F. Mannino formed Walnut Street Four, a general partnership, to purchase and renovate an office building in Harrisburg, Pennsylvania. They borrowed more than $200,000 from Hamilton Bank to purch

Janine loaned Carly $30,000 two years ago.

Janine (not in the loan business) loaned Carly $30,000 two years ago. During the current year, Carly declared bankruptcy. The bankruptcy trustee informed the unsecured creditors that no assets are available for distribution from the bankruptcy estate. For the current year, Janine also had $18,000 of short-term capital gains.