An increase in an effective maximum legal price will do what to prices and quantities actually sold in a market? Prices will ___
1 answer:
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Answer:
7%
Explanation:
In this question, we use the Rate formula which is shown in the spreadsheet.
The NPER represents the time period.
Given that,
Present value = 100 shares × $20 per share = $2,000
Future value = 100 shares × $30 per share = $3,000
PMT = 0
NPER = 6 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this, the answer would be 7%
<u>Conversion of preferred stocks:</u>
The conversion of the preferred stock is as follows,
Debit== Preferred Stock
Debit== Paid-in Capital in Excess of Par - Preferred Stock
Cr. Common Stock
Cr. Paid-in Capital in Excess of Par—Common Stock
Note: Before issuing any convertible preferred stock, company fixes the conversion ratio.