Venus Company issued 20,000 shares of its P70 par value ordinary shares and 8.000 shares of its P80 par value preference share capital for a total of P1,800.000. At this date, the company's ordinary shares were selling at P80 per share and the preference was selling at P100 per share. (1) What amount of the proceeds should be allocated to the preference shares?*
Venus Company issued 20,000 shares of its P70 par value ordinary shares and 8.000 shares of its P80 par value preference share capital for a total of P1,800.000. At this date, the company's ordinary shares were selling at P80 per share and the preference was selling at P100 per share. (1) What amount of the proceeds should be allocated to the preference shares?*
Venus Company issued 20,000 shares of its P70 par value ordinary shares and 8.000 shares of its P80 par value preference share capital for a total of P1,800.000. At this date, the company's ordinary shares were selling at P80 per share and the preference was selling at P100 per share. (1) What amount of the proceeds should be allocated to the preference shares?*
Venus Company issued 20,000 shares of its P70 par value ordinary shares
and 8.000 shares of its P80 par value preference share capital for a total
of P1,800.000. At this date, the company's ordinary shares were selling at
P80 per share and the preference was selling at P100 per share. (1) What
amount of the proceeds should be allocated to the 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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