On April 1, the company issued 15,000 8% noncumulative, retractable preferred shares for $100 per...
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On April 1, the company issued 15,000 8% noncumulative, retractable preferred shares for $100 per share. The shares are retractable by the holder on or after September 1 of the current year, and redeemable at the option of the company on or after September 2 of the current year. Commencing on September 2 the company is required to purchase 10% annually of the total outstanding preferred shares at $105 per share. Assume it's follow ASPE. Show the effect on debt to equity ratio.
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