Replies to post #535282 on Mr Cooper Group Inc (COOP)

[goodietime]

"You do understand APR correct?"

That depends, do YOU understand 'WOULD HAVE BEEN ELIMINATED', meaning NO RETURN, NOT A PENNY.

imo

[hotmeat]

He's 100% correct BOB. If way more than $10B comes back, say $32B, under APR Commons receive much more than Preferred, but with 75%/25% they lose $14B to Preferred....again, comprehension issues!




1) If $8B came back using APR Preferred gets all $8B and Commons would receive $0.00, with the 75%/25% Preferred gets $6B and Common $2B.



2) With $12B and APR, Preferred gets $10B (face value) and Commons receive $2B, with 75%/25% Preferred gets $9B and Commons $3B.



3) If $32B returns using APR Preferred get $10B and Commons $22B, with 75%/25% Preferred gets $24B and Commons get $8B.

[Countyroads]

I thought so but maybe not based on your response to my post. please correct me if this is wrong under normal circumstances I company gets liquidated preferred shareholders will only receive up to their face value and common shareholders will receive 100% of the remainder.

However in this case APR was replaced with a 75 25% split. My point was if preferreds end up receiving $2000 3000 $4000, whatever above their thousand-dollar face value... common would be pissed because under normal APR rules common shareholders would have received 100% of everything once preferred got their $1000... Instead, shareholders now only get 25%. Is that not accurate?