Acme Corporation has begun the process of dissolution. In total, 3 banks have provided a loan (debt) to Acme Corporation for $10 million. In addition, 10 total shareholders have contributed a total of $50 million of capital investment in return for their shares. The corporation has $12 million in liquidated assets to distribute between these groups. Assume that Acme has already satisfied all other creditors including attorneys and does not owe any taxes. Which of the following properly identifies the amount that each group will collect of this $12 million? a. The 10 shareholders will split the entire $12 million; the banks receive nothing.
b. The 3 banks will be paid back their $10 million debts in full; the shareholders will split the remaining $2 million between them.
c. The debt holders will recover $6 million of their debts while the shareholders will split the remaining $6 million.
d. The debt holders will recover $8 million of their debts while the shareholders will split the remaining $4 million.