ABC Company has 100,000 authorized number of common stock, which 80,000 shares were issued and outstanding. The company issues 20,000 additional shares to other people, Mr. Abad’s ownership in the company is 5,000 shares. How much share should he be allowed to buy under the pre-emptive right to maintain his ownership interest in the company? a.1,000 b. 1,250 c. 5,000 d. 4,000
ABC Company has 100,000 authorized number of common stock, which 80,000 shares were issued and outstanding. The company issues 20,000 additional shares to other people, Mr. Abad’s ownership in the company is 5,000 shares. How much share should he be allowed to buy under the pre-emptive right to maintain his ownership interest in the company? a.1,000 b. 1,250 c. 5,000 d. 4,000
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 7EB: Silva Company is authorized to issue 5,000,000 shares of $2 par value common stock. In its IPO, the...
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ABC Company has 100,000 authorized number of common stock, which 80,000 shares were issued and outstanding. The company issues 20,000 additional shares to other people, Mr. Abad’s ownership in the company is 5,000 shares. How much share should he be allowed to buy under the pre-emptive right to maintain his ownership interest in the company?
a.1,000
b. 1,250
c. 5,000
d. 4,000
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