40.8k views
0 votes
Suppose that series a shareholders paid in capital of $3 million. what is the minimum amount that the company must realize on liquidation in order for the common shareholders to receive $10 per share. assume that there are 1 million shares of common stock and 1 million shares of preferred stock outstanding.

User Aroldo
by
6.8k points

1 Answer

4 votes
$ 3 million + $(10(1+1)million))= $ 23 million
User Andrey Tsarev
by
8.0k points