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For a firm with outstanding debt of $50 million, classify each of the following voluntary settlements as an extension, a composition, or a combination of the two.

a. Paying a group of creditors in full in six periodic installments and paying the remaining creditors 75 cents on the dollar immediately.

b. Paying a group of creditors 50 cents on the dollar immediately and paying the remaining creditors 70 cents on the dollar in five periodic installments.

c. Paying all creditors 30 cents on the dollar.

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Corporate Finance, Finance

Category:- Corporate Finance
Reference No.:- M92070131

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