Company X has issued a total of 1000 shares as of 2020.1.30, comprising 700 common shares,...

Company X has issued a total of 1000 shares as of 2020.1.30, comprising 700 common shares, 100 non-debt preferred shares and 200 redeemable preferred shares.

1. What is the capital of this company?(the reason and calculation process together)

Company X repaid redeemable preferred shares in cash on March 1 and merged the shares 2:1 on April 1.

2. What is the capital as of April 2? ( the reason and calculatuon process together)

Company C carried out a paid-in capitsl increase wirh the payment deadline of April 15. A took over 60 shares by subscription to the same paid-in capital increase, and transferred 60 shares that were acquires to B on April 14 due to the urgent need for money.

3. After the settlement of accounts in 2020, who will receive the dividends?

Expert Solution

1	Capital of the company X as on 2020.01.30
Note	assuming the par value or face value of the share is 100

	Particulars	No of share x Face Value	Amount
	Common Share	700x100	70000
	Non-Debt Prefered Share	100x100	10000
	Redeemable prefered Share	200x100	20000
		Total Capital	100000

2	Capital of Company X as on April 2
	Common Share	700x100	70000
	Non-Debt Prefered Share	100x100	10000
	Redeemable prefered Share	100x100	10000
	( After redemption and merged 2:1 means 1 share for every 2 shares held new share will be 200/2*1 = 100 share
		Total Capital	90000

3	assuming the record date of dividend is April 15, i.e Name on member record on 15 will be B as A transferred the share on or before to 15 and become member on record, on the record date of the dividend. So B will be entitled to receive the dividend.

ekkarill92 answered 1 year ago

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