Prepare a journal entry for your option

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Question - On December 22, the accounting team is required to make a financing decision for the 2022 annual budget. VV has a $5 million budget shortage that needs financing. You have three options available for the demanding $5 million. First, VV can borrow the money from a local bank with a 12% annual interest. Second, sell $5 million treasury stocks. Third, initiate $5 million non-participatory preferred stocks with a 12% dividend ratio. Please select one option and clarify your reasons. What is the best way to save money? Prepare a journal entry for your option?

Reference no: EM133077240

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