Modeling Situation 5: Bankruptcy

Prepared by:

Joseph Malkevitch
Department of Mathematics
York College (CUNY)
Jamaica, New York 11451


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1. A firm has gone bankrupt. The confirmed remaining assets of the firm are $240,000. There are two claimants A and B whose verified claims are $60,000 and $440,000, respectively. What would be a fair way to distribute the $240,000 between the two claimants?

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