Calculate total amount of dividends in arrears, Financial Management

QTL Tech has an issue of preferred shares outstanding with a $50 stated value that pays a dividend of 7.5%. There are 325,000 shares outstanding. QTL has not paid preferred share dividends for 3.5 years. The company's CEO wishes to retire the preferred share issue by paying the preferred shareholders 50% of the dividends in arrears plus 10% of the stated value of the preferred.

a. What is the total amount of dividends in arrears? Provide the per share and total dollars amounts.

b. If the preferred shareholders accepted the CEO's offer, what would be the total payment QTL Tech would have to make to the preferred shareholders on a per share and total dollar basis?

c. QTL Tech common shares are trading for $1.22 on the market. If the CEO offered to convert each preferred share into 5 common shares, would this be a better deal for the preferred shareholders?

Posted Date: 3/1/2013 12:37:30 AM | Location : United States







Related Discussions:- Calculate total amount of dividends in arrears, Assignment Help, Ask Question on Calculate total amount of dividends in arrears, Get Answer, Expert's Help, Calculate total amount of dividends in arrears Discussions

Write discussion on Calculate total amount of dividends in arrears
Your posts are moderated
Related Questions
When a manager measures the interest rate exposure, he would be interested in analyzing the exposure to a set of changing interest rate. The process of r

Question: You have just been appointed the secretary of the ALM Committee (ALCO) of ABN Bank. The ALCO members have some queries relating to the liquidity risk faced by the ban

Q. Explain about Temporary or Variable Working Capital ? Temporary or else Variable Working Capital - Any amount over and above the permanent level of working capital is called

Determination of Credit Terms:- The second feature of receivable management, subsequent to setting the credit standards and assessment of credit worthiness of the customers, i

Q. Define the finance function? Is it a risk-return trade off? What is the basic role of a modern financial manager? What is the basic importance of finance function in the mana

Operating Budget It is a collection or set of formal financial documents that details expected expenses and revenues, as like all other expected operating and financial transac

Meaning merits nd demerits of modern approch of financial management

The attached file (MFR & FFM Ass Returns Data.xls) gives 132 months returns for thirty securities drawn from the FT ALL share index as well as the returns on the FT ALL share index

SCL Ltd., a highly profitable company, is engaged in the manufacture of power intensive products. As part of its diversification plans, the company proposes to put up a windmill to

Financial Control: - The establishment as well as use of financial control devices is an important function of financial management. These devices comprise: Budgetary Contro