On March 1, the company issued 50,000 preferred shares with a 5% cumulative dividend for...
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Accounting
On March 1, the company issued 50,000 preferred shares with a 5% cumulative dividend for $10 per share. The preferred shares are redeemable, but not retractable. In addition, the preferred shares can be converted into common shares at any time, at a ratio of 1-to-1. Assume it's follow ASPE. Show the effect on debt to equity ratio.
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