Question

Ozark Distributing Company is primarily engaged in the wholesale distribution of consumer products in the Ozark Mountain regi

0 0
Add a comment Improve this question Transcribed image text
✔ Recommended Answer
Answer #1

1.

Compute the amount of dividend as follows:

Par value preferred shares (A) Dividend rate (B) Total Annual Preferred Dividend [C= A × B] Number of preferred shares (D) Dividend per preferred shares [E = C/D] Shares Owned (F) Annual preferred dividend 100 shares [ G = E × F]
$2,500,000 6.785% $169,625 100,000 $1.696 100 $170
(Roundoff)

__________________________________________________________________

2.

Compute the amount of dividend will the shareholders receive:

Dividend paid on 100 shares paid in 2021 = Annual preferred dividend \times Number of years

= $170 \times 3 years

= $510

Dividend paid on 100 shares is $510

____________________________________________________________________

3.

Compute shares of common stock:

Number of convertible preferred shares owned (A) Conversation Factor (B) Number of common shares received            [A × B]
100 $25/$30.31 82.5

________________________________________________________

4.

Compute amount as follows:

Per share Total 100 shares
Liquidation preference $25
Redemption percentage 112%
Redemption percentage, June 18, 2017 ($25 × 112%) $28
Percent reduction in redemption price (1%+1%) 2%
Redemption price June 18, 2019 [($28 × (100%-2%)] $27.44 $2,744
($27.44 × 100 shares)
Add a comment
Know the answer?
Add Answer to:
Ozark Distributing Company is primarily engaged in the wholesale distribution of consumer products in the Ozark...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
  • Ozark Distributing Company is primarily engaged in the wholesale distribution of consumer products in the Ozark...

    Ozark Distributing Company is primarily engaged in the wholesale distribution of consumer products in the Ozark Mountain regions. The following disclosure note appeared in the company’s 2018 annual report: Note 5. Convertible Preferred Stock (in part): Dates of Issuance June 17, 2015 Optionally redeemable beginning June 18, 2015 Par value (gross proceeds) $. 4,000,000 Number of shares 160,000 Liquidation preference per share $ 30 Conversion price per share $ 38.42 Number of common shares in which to be converted 124,934...

  • 20. 20 Ozark Distributing Company is primarily engaged in the wholesale distribution of consumer products in...

    20. 20 Ozark Distributing Company is primarily engaged in the wholesale distribution of consumer products in the Ozark Mountain regions The following disclosure note appeared in the company's 2018 annual report . 0.35 points Note 5. Convertible Preferred Stock (in part) The Company has the following Convertible Preferred Stock outstanding as of September 2018: Date of issuance: Optionally redeemable beginning: Par value (gross proceeds): Number of shares: Liquidation preference per share: Conversion price per share: Number of common shares in...

  • 20. please answer this correctly and show the formulas if u can. this assignment is due...

    20. please answer this correctly and show the formulas if u can. this assignment is due soon. Return to question 20 Ozark Distributing Company is primarily engaged in the wholesale distribution of consumer products in the Ozark Mountain regions. The following disclosure note appeared in the company's 2018 annual report 035 points Note 5. Convertible Preferred Stock (in part) The Company has the following Convertible Preferred Stock outstanding as of September 2018 Date of issuance: Optionally redeemable beginning: Par value...

  • Problem 16-7 Charles Austin of the controller's office of Cheyenne Corporation was given the assignment of...

    Problem 16-7 Charles Austin of the controller's office of Cheyenne Corporation was given the assignment of determining the basic and diluted earnings per share values for the year ending December 31, 2018. Austin has compiled the information listed below. 1. The company is authorized to issue 7,800,000 shares of $10 par value common stock. As of December 31, 2017, 1.950,000 shares had been issued and were outstanding, 2. The per share market prices of the common stock on selected dates...

  • Charles Austin of the controller's office of Pharoah Corporation was given the assignment of determining the...

    Charles Austin of the controller's office of Pharoah Corporation was given the assignment of determining the basic and diluted earnings per share values for the year ending December 31, 2018. Austin has compiled the information listed below. 1. The company is authorized to issue 7.720,000 shares of $10 par value common stock. As of December 31, 2017, 1,930,000 shares had been issued and were outstanding. 2. The per share market prices of the common stock on selected dates were as...

  • Charles Austin of the controller’s office of Sarasota Corporation was given the assignment of determining the...

    Charles Austin of the controller’s office of Sarasota Corporation was given the assignment of determining the basic and diluted earnings per share values for the year ending December 31, 2021. Austin has compiled the information listed below. 1. The company is authorized to issue 8,080,000 shares of $10 par value common stock. As of December 31, 2020, 2,020,000 shares had been issued and were outstanding. 2. The per share market prices of the common stock on selected dates were as...

  • Charles Austin of the controller’s office of Ayayai Corporation was given the assignment of determining the...

    Charles Austin of the controller’s office of Ayayai Corporation was given the assignment of determining the basic and diluted earnings per share values for the year ending December 31, 2021. Austin has compiled the information listed below. 1. The company is authorized to issue 8,120,000 shares of $10 par value common stock. As of December 31, 2020, 2,030,000 shares had been issued and were outstanding. 2. The per share market prices of the common stock on selected dates were as...

  • Charles Austin of the controller’s office of Bonita Corporation was given the assignment of determining the...

    Charles Austin of the controller’s office of Bonita Corporation was given the assignment of determining the basic and diluted earnings per share values for the year ending December 31, 2021. Austin has compiled the information listed below. 1. The company is authorized to issue 7,680,000 shares of $10 par value common stock. As of December 31, 2020, 1,920,000 shares had been issued and were outstanding. 2. The per share market prices of the common stock on selected dates were as...

  • Your answer is incorrect. Try again. Charles Austin of the controller’s office of Crane Corporation was...

    Your answer is incorrect. Try again. Charles Austin of the controller’s office of Crane Corporation was given the assignment of determining the basic and diluted earnings per share values for the year ending December 31, 2021. Austin has compiled the information listed below. 1. The company is authorized to issue 8,000,000 shares of $10 par value common stock. As of December 31, 2020, 2,000,000 shares had been issued and were outstanding. 2. The per share market prices of the common...

  • Charles Austin of the controller's office of Coronado Corporation was given the assignment of determining the...

    Charles Austin of the controller's office of Coronado Corporation was given the assignment of determining the basic and diluted earnings per share values for the year ending December 31, 2018. Austin has compiled the information listed below. 1. The company is authorized to issue 7,680,000 shares of $10 par value common stock. As of December 31, 2017, 1.920,000 shares had been issued and were outstanding 2. The per share market prices of the common stock on selected dates were as...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT