Marigold Corp. issued 10100 shares of its $5 par value common stock having a fair value...

Marigold Corp. issued 10100 shares of its $5 par value common stock having a fair value of $20 per share and 14700 shares of its $15 par value preferred stock having a fair value of $30 per share for a lump sum of $518000. How much of the proceeds would be allocated to the common stock?

$162731

$355269

$202000

$228250

Expert Solution

Shares	Number of shares	Fair value per share	Total fair value	% of fair value	Allocated amount
Common	10,100	20	202,000	31.4152%	518,000 x 31.4152% = 162,731
Preferred	14,700	30	441,000	68.5848%	518,000 x 68.5848% = 355,269
	24,800		643,000		518,000

The proceeds would be allocated to the common stock = $162,731

First option is correct.

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ekkarill92 answered 1 year ago

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