Reference no: EM132489367

Question 1: On January 1, 2017, Swifty Corporation issued eight-year bonds with a face value of $6050000 and a stated interest rate of 8%, payable semiannually on June 30 and December 31. The bonds were sold to yield 10%. Table values are:

Present value of 1 for 8 periods at 8%          0.540

Present value of 1 for 8 periods at 10%          0.467

Present value of 1 for 16 periods at 4%           0.534

Present value of 1 for 16 periods at 5%              0.458

Present value of annuity for 8 periods at 8%          5.747

Present value of annuity for 8 periods at 10%           5.335

Present value of annuity for 16 periods at 4%          11.652

Present value of annuity for 16 periods at 5%         10.838

The issue price of the bonds is

$5442096.

$5407490.

$6048548.

$5393696.

Question 2: Crane Company has outstanding 590000 shares of $2 par common stock and 121000 shares of no-par 6% preferred stock with a stated value of $5. The preferred stock is cumulative and nonparticipating. Dividends have been paid in every year except the past two years and the current year.

Assuming that $94000 will be distributed as a dividend in the current year, how much will the preferred stockholders receive?

$94000.

$36300.

$72600.

$32300.