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When preferred stock is converted to common stock a. The debt-to-equity ratio decreases. b. The debt-to-equity ratio increases. c. The debt-to-equity ratio is unchanged. d.
When preferred stock is converted to common stock a. The debt-to-equity ratio decreases. b. The debt-to-equity ratio increases. c. The debt-to-equity ratio is unchanged. d. A gain or loss is reported in earnings for the difference between the fair value of the common stock and the book value of the preferred stock that was converted .
When preferred stock is converted to common stock
a. The debt-to-equity ratio decreases.
b. The debt-to-equity ratio increases.
c. The debt-to-equity ratio is unchanged.
d. A gain or loss is reported in earnings for the difference between the fair value of the common stock and the book value of the preferred stock that was converted .
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Accounting For Beginners
Authors: Neel Gaines
1st Edition
1801120897, 978-1801120890
