Problem: The simple corporation has an outstanding debt obligation (total of principle and interest due) to the Complex Corporation of $250 (Assume this is Simple's only debt.). It is year end and the total cash flow of Simple from all sources is $325. The contingent payoff to the debt and equity holders of Simple Corporation is:
a. $250; $75
b. $250; $325
c. $75; $250
d. $325; $250
e. none of the above