✒️STOCKS

a share which entitles the holder to a fixed dividend, whose payment takes priority over that of common-stock dividends.

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PROBLEM:

Millares incorporated issued 300,000 shares of stocks. 25% of these are preferred stocks and the rest are common stocks. How many shares are common stocks?

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SOLUTION:

• 300,000 × 0.25 = 75,000

• 300,000 - 75,000 = 225,000

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✏️Answer

A. 225,000

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