ZuoTi.Pro
Question

ational Health Corporation (NHC) has a cumulative preferred stock issue outstanding, which has a stated annual...

ational 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 450,000 shares of preferred stock outstanding and 750,000 shares of common stock.

Required:

If NHC earns $18,500,000 in the upcoming year after taxes and before dividends, and this is all paid out to the preferred shareholders, how much will the company be in arrears?

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Preference Dividend in Arrrears Coming year Dividend Total Payable Less Paid Amount Still in Arrears 450000*8*5 450000*8 1800

0 0
Add a comment
Know the answer?
Add Answer to:
ational Health Corporation (NHC) has a cumulative preferred stock issue outstanding, which has a stated annual...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • A corporation has 15,000 shares of 10%, $50 par cumulative preferred stock outstanding and 25,000 shares...

    A corporation has 15,000 shares of 10%, $50 par cumulative preferred stock outstanding and 25,000 shares of no-par common stock outstanding. Dividends of $37,500 are in arrears. At the end of the current year, the corporation declares a dividend of $120,000. The amount of preferred stock paid in the current year is ?

  • A corporation has 15.000 shares of 16%, 550.00 par cumulative preferred stock outstanding and 36,000 shares

    A corporation has 15.000 shares of 16%, 550.00 par cumulative preferred stock outstanding and 36,000 shares of no- par common stock outstanding Preferred dividends of $16,000 are in arrears. At the end of the current year, the corporation declares a dividend of $240,000. How is the dividend allocated between preferred and common stockholders? A. The dividend is allocated $136,000 to preferred stockholders and 5104,000 to common stockholders. B. The dividend is allocated $104,000 to preferred stockholders and 5136,000 to common stockholders. C. The...

  • Your Corporation has the following number of shares of stock outstanding: Cumulative Preferred stock, 2.5%. $100...

    Your Corporation has the following number of shares of stock outstanding: Cumulative Preferred stock, 2.5%. $100 par 8,000 shares Common stock,$10 par 10,000 shares It will distribute $100,000 to the two classes of stockholders this year. Including the current year, the preferred stock is three years in arrears. How much of the dividend will the common stockholders receive? $100,000 $ 20,000 $ 40,000 $ 60,000 Your Corporation is authorized to issue 800,000 shares of $3.00 par value common stock. When...

  • Enterprise Storage Company has 510,000 shares of cumulative preferred stock outstanding, which has a stated dividend...

    Enterprise Storage Company has 510,000 shares of cumulative preferred stock outstanding, which has a stated dividend of $4.75. It is six years in arrears in its dividend payments. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. How much in total dollars is the company behind in its payments? (Do not round intermediate calculations. Input your answer in dollars, not millions (e.g., $1,234,000).) Dividend in arrears b. The firm...

  • Calculate the cash dividends required to be paid for each of the following preferred stock issuances:...

    Calculate the cash dividends required to be paid for each of the following preferred stock issuances: (a.) The semiannual dividend on 11.5% cumulative preferred, $100 par value; 6,000 shares authorized, issued, and outstanding. (b.) The total dividends owed to preferred shareholders on $1.50 annual cumulative preferred, 100,000 shares authorized, 85,000 shares issued, and 81,350 shares outstanding. The company did not pay dividends during the prior two years or during the current year. (c.) The quarterly dividend on 9.6% cumulative preferred,...

  • Preferred stock—5% cumulative, $25 par value, $30 callprice, 10,000 shares issued and outstanding $ 250,000 Common...

    Preferred stock—5% cumulative, $25 par value, $30 callprice, 10,000 shares issued and outstanding $ 250,000 Common stock—$10 par value, 45,000 shares issued and outstanding 450,000 Retained earnings 267,500 Total stockholders’ equity $ 967,500 Determine the book value per share of the preferred and common stock under two separate situations. 1. No preferred dividends are in arrears. Preferred stock—5% cumulative, $25 par value, $30 callprice, 10,000 shares issued and outstanding $ 250,000 Common stock—$10 par value, 45,000 shares issued and outstanding...

  • Enterprise Storage Company has 570,000 shares of cumulative preferred stock outstanding, which has a stated dividend...

    Enterprise Storage Company has 570,000 shares of cumulative preferred stock outstanding, which has a stated dividend of $10.75. It is six years in arrears in its dividend payments. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. How much in total dollars is the company behind in its payments? (Do not round intermediate calculations. Input your answer in dollars, not millions (e.g., $1,234,000).) b. The firm proposes to offer...

  • Preferred stock valuation TXS Manufacturing has an outstanding preferred stock issue with a par value of...

    Preferred stock valuation TXS Manufacturing has an outstanding preferred stock issue with a par value of $65 per share. The preferred shares pay dividends annually at a rate of 12%. a. What is the annual dividend on TXS preferred stock? b. If investors require a return of 8% on this stock and the next dividend is payable one year from now, what is the price of TXS preferred stock? c. Suppose that TXS has not paid dividends on its preferred...

  • Company XYZ has 2,000 shares of 6%, $100 par value, cumulative preferred stock and 4,000 common...

    Company XYZ has 2,000 shares of 6%, $100 par value, cumulative preferred stock and 4,000 common shares outstanding. A $40,000 dividend is declared by the company's board of directors in the current financial report. Assuming there are $6,000 dividends in arrears from the previous financial year, what are the dividends paid to preferred shareholders and common shareholders, respectively? A. Preferred stock: $9 per share; Common stock: $7.5 per share B. Preferred stock: $6 per share; Common stock: $5.5 per share...

  • York's outstanding stock consists of 80,000 shares of cumulative 5% preferred stock with a $5 par...

    York's outstanding stock consists of 80,000 shares of cumulative 5% preferred stock with a $5 par value and also 200,000 shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends 2015 $ 20,000 2016 28,000 2017 200,000 2018 350,000 Determine the amount of dividends paid each year to each of the two classes of stockholders assuming that the preferred stock is cumulative. Also determine...

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