Question

A company has a market capitalization of $20,000,000. It has 30% of its market cap sold under preferred stock and 70%

under common stock? How much money of the market capitalization is preferred stock?
CA 1000

Answer 1

B : 6,000,000

Credits go to the person above me.

Step-by-step explanation:

VB Business 2021

Answer 2

Answer: $6,000,000

Step-by-step explanation:

Hi, to answer this question we simply have to multiply the total market capital of the company (20,000,000) by the percentage under preferred stock (30%) in decimal form.

Mathematically speaking:

20,000,000 x (30/100) = $6,000,000

Feel free to ask for more if needed or if you did not understand something.