Question

20.

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 (gross proceeds): Number of shares: Liquidation preference per share Conversion price per s Number of common shares in which to be converted: Dividend rate: June 17, 2015 June 18, 2017 $1,288,000 128,800 10 s 13.26 90,497 hare: 6.69e% The Preferred Stock is convertible at any time by the holders into a number of shares of Ozark's common stock equal to the number of preferred shares being converted times a fraction equal to $10 divided by the conversion price. The conversion prices for the Preferred Stock are subject to customary adjustments in the event of stock splits, stock dividends and certain other distributions on the Common Stock. Cumulative dividends for the Preferred Stock are payable in arrears, when, as and if declared by the Board of Directors, on March 31, June 30, September 30. and December 31 of each year The Preferred Stock is optionally redeemable by the Company beginning on various clates, as listed above, at reciemption prices equal to 110% of the liquidation preference. The redemption prices decrease 2% annually thereafter until the redemption price equals the liquidation preference after which date it remains the liquidation preference Required: K Prey20 of 40Next>

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

Answer 1

Answer:

Part 1
Part value preferred shares	dividend rate	total annual preferred dividend	number of preferred shares	dividend preferred per share	shares owned	annual preferred dividend 150 shares
12,00,000	6.690%	80,280	1,20,000	0.669	150	100.35

Part 2) Amount Of Dividends

=$100.35 X 3Years

=$ 301.05

Part 3)

No of Convertible Pref shares Owned	Conversion Factor	No of Comman Shares received
150	$0.7541*	113.115
*=10/13.26

Part 4
	Per share amounts	total 150 shares
Liquidation preference	$10
Redemption percentage	110%
Redemption price June 18 ,2017(10*110%)	$11
Percentage reduction in redemption price(2years X 2%)	4%
Redemption price June 18, 2019 (11*(1-4%)	$10.56	(150*10.56) $1,584