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I tried the excel model. If you take a shell company and it has $2 of cash and $1 of senior debt and $1 of junior debt its Firm Value is $0. The excel model gives NA for the debt value. https://prnt.sc/vv935r

Are pref shares then valued using the same method as subordinated debt since they also get what is "left over" the residual after the senior are paid off?