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  1. business
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  3. company x authorized the following capital stock:

company X authorized the following capital stock: Common stock, no-par, 103,000 shares Preferred stock, 9...

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Accounting

company X authorized the following capital stock: Common stock, no-par, 103,000 shares Preferred stock, 9 percent, par value $8 per share, 4,000 shares The board of directors established a stated value on the no-par common stock of $10 per share. During 2011, the following selected transactions were completed in the order given: a. Sold and issued 20,000 shares of the no-par common stock at $16 cash per share. b. Sold and issued 3,000 shares of preferred stock at $20 cash per share. c. At the end of 2011, the accounts showed net income of $40,000. Required: Assume that you are a common stockholder. If Tandy needed additional capital, would you prefer to have it issue additional common stock or additional preferred stock? Explain.

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