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ABC company is increasing its equity by selling additional shares to.docx
ABC Company aims to raise $1,000 by increasing its equity through public share sales and converting retained earnings. With retained earnings of $300, the external amount needed from new shares would be $700. The answer to the external funds needed is option a) $700.
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ABC company is increasing its equity by selling additional shares to.docx
- 1. ABC company isincreasing its equity by selling additional shares to the public and also by converting its retained earnings. The total amount to be raised is $1,000. Given that the size of retained earnings is $300, how much should be raised externally (by issuing new shares)? a) $700 b) $705 c) $1,000 d) $1,005 e) $300