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
Which ratios would a banker be most interested in when considering whether to approve an application for a short-term business loan? Explain. Bankers and another lenders use li

What is the role of securities firms in investment intermediaries? Securities firms assist within the trading of existing securities into the secondary markets. The two major c

Define Modern Approach of financial management Modern approach views the term financial management in a broad sense and provides a conceptual and analytical framework for fina

What is Net Present Value? Describe please.

Short sales  : Short sales of a security means borrowing of an underlying security by an investor from other investors who are holding it (in Demat account) and selling it with

a) A niche market refers to a lucrative and small market segment. Marketing strategy is targeted and concentrated at this specific market segment. Pink Ladies are specifically targ

I am facing some problems in my assignment on the topic Preliminary Screening. Can anybody suggest me the proper explanation for it?

Explain about the debt policy Designing debt policy the debt policy of a firm is significantly influenced by the cost consideration. In designing financing policy, that is, p

You deposit $3,000 in a back account that pays 10% annually, how much would you have im your account after 5 years?

Interference of Central bank in Markets: Some dilemmas exist in the issue of central bank intervention in the market to correct the volatilities in the prices. In some countrie