Assume that you are a common stockholder of inside incorporated. if the company needed additional capital, and maintaining your current level of voting control was important, would you prefer to have it issue additional common stock or additional preferred stock

Additional Preferred Stock

Explanation:

Preferred Stock always provides a preferential right in terms of distribution of earnings. But in no manner it increases the common equity, or the number of participants in common equity.

Also, there is no voting right attached with the preference shares of a company.

As when new equity will be issued the number of shareholders will increase and also the share percentage held currently will fall.

Accordingly the voting right and voting control will fall.

As investor do not desire the above, the preference share capital shall be issued so that there is no decline in voting share or control of the investor.

answer90,000;