Question

Question 3 Nkunim Ltd has incurred losses for many years. It has been observed that there is no other option to liquidation. Accordingly, the assets are analyzed to determine how much they will generate under forced sale
GHC’000 Property, Plant and Equipment 3 500 Inventories 2 400 Accounts receivables 720 Investment 1 450
Expenses associated with the liquidation are GHC 1,500,000. The bank overdraft is secured against the property, plant and equipment. The key stakeholders and their interest in the companies are as follows;
3 EMG 413: Capital Reconstruction Sir Gaius

GHC’000 Ordinary share 6 300 10% preference share 1 700 15% Debenture (Unsecured) 2 500 Accounts payables 1 250 Bank Overdraft 4 000
The ordinary shareholders are agitating that they have to be paid first considering that they have the highest stake in the organization.
You are required to compute how much each stakeholder will get on the liquidation

Answer 1

Answer:

THE STAKEHOLDER WILL GET.......