Alpha corp can issue senior debt of more than $25 Million.
According to the question, it is already given that Alpha Corp. is prohibited from issuing more senior debt unless net tangible assets exceed 200% of senior debt. Therefore Alpha Corp. Can issue debt only half of the net tangible asset. Alpha Corp. has net tangible assets of $250 Million. Therefore Alpha can issue 50% of $250 million as a senior debt which is $125 Million. Because at $125 million of senior debt Alpha is meeting the requirement of 200% of the net tangible asset. Additional further senior debt can be issued = total senior debt can be issued - existing senior debt additional further senior debt can be issued = $125 million - $100 million. Hence additional further senior debt can be issued = $25 Million.
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