Company that needs extra income

timer Asked: Apr 28th, 2015

Question description

A company needs extra income to grow. It needs 5,000,000


a Borrow money at 9%

b issue common stock 100,000 shares

c issug 3.75 non voting preferred stock 100,000 shares


Net income 6,000,000

Aditional income from expansion 1,500,000

Present number of shares common stock 500,000

Tax rate 40%

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