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    East Coast Yacht club scenario

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    East Coast Yachts uses a small % of preferred stock as a source of financing. In calculating the ratios for the company, should preferred stock be included as a part of the company's total equity?

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    Solution Preview

    First of all preferred stock is a kind of equity that companies can use to finance their business. Preferred stock can be considered as part of the company's debt or equity. Associating preferred stock to debt or equity is partially a subjective decision, but will take into account ...

    Solution Summary

    First of all preferred stock is a kind of equity that companies can use to finance their business. Preferred stock can be considered as part of the company's debt or equity. Associating preferred stock to debt or equity is partially a subjective decision, but will take into account specific...

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