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A company has the following Capital Structure: Ordinary $10 shares authorized: 1,000,000, of which 800,000 are issued. 100,000 $20 Preference shares issued and $5,000,000 Bonds at 5% interest The directors propose a 50 cent dividend on ordinary shares. A 80 cent dividend is due on the preference shares What is the total equity of the company? $17,000,000 $12,000,000 $7,000,000 $15,000,000

A company has the following Capital Structure: Ordinary $10 shares authorized: 1,000,000, of which 800,000 are issued. 100,000 $20 Preference shares issued and $5,000,000 Bonds at 5% interest The directors propose a 50 cent dividend on ordinary shares. A 80 cent dividend is due on the preference shares What is the total equity of the company? $17,000,000 $12,000,000 $7,000,000 $15,000,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company has the following Capital Structure: Ordinary $10 shares authorized: 1,000,000, of which 800,000 are issued. 100,000 $20 Preference shares issued and $5,000,000 Bonds at 5% interest The directors propose a 50 cent dividend on ordinary shares. A 80 cent dividend is due on the preference shares What is the total equity of the company? $17,000,000 $12,000,000 $7,000,000 $15,000,000
Transcribed Image Text:A company has the following Capital Structure: Ordinary $10 shares authorized: 1,000,000, of which 800,000 are issued. 100,000 $20 Preference shares issued and $5,000,000 Bonds at 5% interest The directors propose a 50 cent dividend on ordinary shares. A 80 cent dividend is due on the preference shares What is the total equity of the company? $17,000,000 $12,000,000 $7,000,000 $15,000,000
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