Saddle Cross Company has preferred stock with a par value of $12 that is convertible into common stock at the ratio of 1 to 1. The common stock has a par value of $8. The following table presents the components of stockholders' equity for Saddle Cross Company:
a. How many shares of common stock were sold during the year and at what price?
b. How many shares of preferred stock were converted this year?

Question

Saddle Cross Company has preferred stock with a par value of $12 that is convertible into common stock at the ratio of 1 to 1. The common stock has a par value of $8. The following table presents the components of stockholders' equity for Saddle Cross Company:
  a. How many shares of common stock were sold during the year and at what price?
b. How many shares of preferred stock were converted this year?

Quizplus · Accepted Answer

The Answer of Saddle Cross Company has preferred stock with a par value of $12 that is convertible into common stock at the ratio of 1 to 1. The common stock has a par value of $8. The following table presents the components of stockholders' equity for Saddle Cross Company:
  a. How many shares of common stock were sold during the year and at what price?
b. How many shares of preferred stock were converted this year?

Saddle Cross Company Has Preferred Stock with a Par Value