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problem: Longfellow is authorized to issue 1,500,000 shares of its one dollar par value common stock & 400,000 dollar shares of 50 dollar par value preferred stock. Longfellow plans to sell 20,000 shares of commons stock at 35 dollar & 1,000 shares of its preferred stock at 55 dollar per share. How much capital will Longfellow generate by this sale? Determine the Longfellow’s legal capital?

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