How much is the company behind in preferred dividends

Assignment Help Financial Management
Reference no: EM13950880

National Health Corporation (NHC) has a cumulative preferred stock issue outstanding, which has a stated annual dividend of $8 per share. The company has been losing money and has not paid preferred dividends for the last five years. There are 350,000 shares of preferred stock outstanding and 650,000 shares of common stock.

a. How much is the company behind in preferred dividends?

b. If NHC earns $13,500,000 in the coming year after taxes but before dividends, and this is all paid out to the preferred stockholders, how much will the company be in arrears (behind in payments)? Keep in mind that the coming year would represent the sixth year.

 

c. How much, if any, would be available in common stock dividends in the coming year if $13,500,000 is earned as explained in part b?

Reference no: EM13950880

Questions Cloud

Metro food services company delivers : Metro Food Services Company delivers fresh sandwiches each morning to vending machines throughout the city. The company makes three kinds of sandwiches-ham and cheese, bologna, and chicken salad. A ham and cheese sandwich requires a worker 0.45 mi..
What is probability that there is majority of right-wingers : Each left winger votes for a strike three out of four times in strike votes, whereas each right winger votes for a strike only once out of three times in strike votes. If it is known that the Committee has decided against one particular strike, wh..
Developing the corporate strategic plan : How did the involvement of in developing the corporate strategic plan assist charmagne in challenging Brian?
It is impossible to have an apr quoted for deposit accounts : It is impossible to have an APR quoted for deposit accounts? Or, better yet, is it impossible to have an EAR calculated for loans?
How much is the company behind in preferred dividends : National Health Corporation (NHC) has a cumulative preferred stock issue outstanding, which has a stated annual dividend of $8 per share. The company has been losing money and has not paid preferred dividends for the last five years. How much is the ..
Problem regarding the incompetent management : Henry Manne believed that companies cannot become too incompetent or corrupt, as eventually their share price would fall and they could be taken over by another firm that would get rid of incompetent management. Adolf Berle and Gardiner Means beli..
Extract compound of interest from tlc : I want to extract compound of interest from TLC. I am finding some enzyme inhbitor from microbial source can you plzz suggest me how to prepare nad get my compound.
Calculate button to show the pools volume in a message box. : The Hot Tubs tab will allow for round and oval tubs volumes to be calculated as in the Pools. The Temp Calc will allow the user to enter a temperature with a drop box to choose C or F and a Convert button to convert the figure into the opposite of..
The planned purchase of the house assets : Rocco and Stella Thompson are in their 20s and are just about to make one of the most important commitments of their lives is buying a home and starting a family. They have been living in a small apartment in Denver, since their marriage and college ..

Reviews

Write a Review

 

Financial Management Questions & Answers

  Average balance in accounts payable and accounts receivable

Calvani, Inc., has a cash cycle of 42 days, an operating cycle of 60 days, and an inventory period of 25.5 days. The company reported cost of goods sold in the amount of $350,000, and credit sales were $573,000. What is the company’s average balance ..

  International workforce and its impact on strategy

The workforce management is far more complicated in companies with operations in multiple countries than their domestic counterparts. There are political, economic, social-cultural, technological, and legal issues that add substantial challenges t..

  What should be the market price of bonds

Jones Corp’s outstanding bonds, which have a face value of $1,000, have 10 years remaining to maturity. The bonds’ coupon rate is 6%, and interest is paid semiannually. If investors require a rate of return equal to 5% to invest in similar-risk bonds..

  Contemplating replacing current fleet of delivery vehicles

Your company is contemplating replacing their current fleet of delivery vehicles with Nissan NV vans. You will be replacing 5 fully-depreciated vans, which you think you can sell for $3,800 apiece and which you could probably use for another 2 years ..

  How much is the expected total variable cost on budget

Aaron's chairs is in the process of preparing a production cost budget for August. Actual costs in July for 120 chairs were: Materials cost $4,890 Labor cost 2,670 Rent 1,500 Depreciation 2,500 Other fixed costs 3,200 Materials and labor are the only..

  Target capital structure of common stock-preferred stock

Mullineaux Corporation has a target capital structure of 62 percent common stock, 7 percent preferred stock, and 31 percent debt. Its cost of equity is 13.2 percent, the cost of preferred stock is 6.2 percent, and the cost of debt is 7.9 percent. Wha..

  How much of potential value might the company lose

ABC Company considers Projects A and B, whose cash flows and the required rate of return (WACC) are shown below. These projects are mutually exclusive and equally risky. The CEO wants to use the IRR criterion, while the CFO recommends the NPV method...

  Determined that a rate of return

Marko, Inc. is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $4,800, $9,800, and $16,000 over the next three years, respectively. After that time, they feel the business will be worthless. Marko has determ..

  Assets must grow at the same rate as projected sales

Broussard Skateboard's sales are expected to increase by 20% from $9.0 million in 2015 to $10.80 million in 2016. Its assets totaled $3 million at the end of 2015. Broussard is already at full capacity, so its assets must grow at the same rate as pro..

  What is the capital intensity ratio at full capacity

The Corner Store has $492,000 of sales and $275,000 of total assets. The firm is operating at 82% of full capacity. What is the capital intensity ratio at full capacity?

  How much is paid to the retailers vendor

A retailer purchases goods that have a list price of $7,500. The manufacturer allows a trade discount of 40-25-10 and a cash discount of 2/10, net 30. If the retailer takes both discounts, how much is paid to the retailer’s vendor?

  What is heusers after-tax cost of debt

The heuser company's currently outstanding bonds have a 10% coupon and a 12% yield to maturity. Heuser believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 35%, what is heuser's after-ta..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd