Suppose the corporation repurchased its preferred shares. What would be the amount of the reduction of the company's total shareholders' equity if the cost to repurchase the preferred shares was
(a) $5,000 million?
(b) $4,384 million?
(c) $4,000 million?
Shareholders' Equity ($ amounts in millions)
Adapted from a corporation's annual report
Contributed capital
Preferred shares (Note 15)* ............................... $ 4,384
Common shares (Note 16)** ............................... 8,432
Retained earnings ........................................... 24,662
Accumulated other comprehensive income (loss) ........ (4,718)
................................................................... $32,760
*Note 15: Preferred Shares (adapted) Authorized An unlimited number of Preferred Shares without nominal or par value.
Issued and fully paid
Preferred shares ...................175,345,767 shares
**Note 16: Common Shares (adapted) Authorized
An unlimited number of Common Shares without nominal or par value.
Issued and fully paid
Common shares .................1,088,972,173