On January 1, 2023, Japan Company acquired 50,000 shares of David Company ordinary shares for a total consideration of P6,000,000 as a nontrading investment. On October 1, 2023, Japan received from David a preference shares dividend of one share for every 5 ordinary shares held. On this date, the market price of David’s ordinary shares is P140 per share and the preference is P100 per share. What is the balance of Japan Company’s investment in David Company preference shares?
On January 1, 2023, Japan Company acquired 50,000 shares of David Company ordinary shares for a total consideration of P6,000,000 as a nontrading investment. On October 1, 2023, Japan received from David a preference shares dividend of one share for every 5 ordinary shares held. On this date, the market price of David’s ordinary shares is P140 per share and the preference is P100 per share. What is the balance of Japan Company’s investment in David Company preference shares?
On January 1, 2023, Japan Company acquired 50,000 shares of David Company ordinary shares for a total consideration of P6,000,000 as a nontrading investment. On October 1, 2023, Japan received from David a preference shares dividend of one share for every 5 ordinary shares held. On this date, the market price of David’s ordinary shares is P140 per share and the preference is P100 per share. What is the balance of Japan Company’s investment in David Company preference shares?
On January 1, 2023, Japan Company acquired 50,000 shares of David Company ordinary shares for a total consideration of P6,000,000 as a nontrading investment. On October 1, 2023, Japan received from David a preference shares dividend of one share for every 5 ordinary shares held. On this date, the market price of David’s ordinary shares is P140 per share and the preference is P100 per share. What is the balance of Japan Company’s investment in David Company preference shares?
Definition Definition Type of stock which is granted priority over dividend distributions as compared to common stockholders. Preferred stocks also do not carry any voting rights. Notably, in a case where a company is going to be liquidated, preferred stockholders have a priority claim on the value of assets of the company as quoted in the balance sheet, as compared to the common stockholders.
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