Answer:
$240,909
Explanation:
Given:
Number of common stocks issued = 10,000
Value of common stock = $5
Fair value per share = $25
Number of shares of $15 par value = 15,000
preferred stock having a fair value of $20 per share = $530,000
Total market value of the stocks = 10,000 × $25 + 15,000 × 20 = $550,000
Now,
The proceeds that would be allocated to the common stock will be
= [tex]\frac{\textup{Total fair value of common stocks}}{\textup{Total maket value of the stocks}}\times\textup{Preffered value of total stocks}[/tex]
= [tex]\frac{10,000\times25}{550,000}\times530,000[/tex]
= $240,909
