Cumulative preferred stock issue outstanding

Assignment Help Financial Management

Reference no: EM131308454

National 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 350,000 shares of preferred stock outstanding and 650,000 shares of common stock.

a. How much is the company behind in preferred dividends?

b. If NHC earns $13,500,000 in the coming years after taxes but before dividends, and this is all paid out to the preferred stockholders, how much will the company be in arrears (behind in payments)? Keeping in mind that the coming years would represent the sixth year.

c. How much, if any, would be available in common stock dividends in the coming year if $13,500,000 is earning as explained in part b?

Reference no: EM131308454

Questions Cloud

Does smtp have any presentationlayer features : In Chapter 1, we mentioned that the TCP/IP suite, unlike the OSI model, has no presentation layer. But an application-layer protocol can include some of the features defined in this layer if needed. Does SMTP have any presentationlayer features?

Create a sub procedure and a function procedure : Write the syntax for a computer program to perform advanced loops.Create a sub procedure and a function procedure.Use a two-dimensional array to store, access, and search for elements within a computer program. Utilize structures and sequential-acces..

Relationship between property rights-corruption : What is the relationship between property rights, corruption, and economic progress? How important are anti corruption efforts in the effort to improve a country's level of economic development?

Does smtp or pop3 have any session layer features : In Chapter 1, we mentioned that the TCP/IP suite, unlike the OSI model, has no session layer. But an application-layer protocol can include some of the features defined in this layer if needed. Does SMTP or POP3 have any session layer features?

Cumulative preferred stock issue outstanding : National 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. How much is the ..

What are common stockholders residual claims to earnings : Folic Acid Inc. has $20 million in earnings, pays $2.75 million in interest to bondholders, and $1.80 million in dividends to preferred stockholders. What are the common stockholders' residual claims to earnings? What are the common stockholders' leg..

Important to consumers of healthcare services : Which performance measures in these categories are most important to consumers of healthcare services? Why?

Zap fund is the mainstay of your portfolio : Zap Fund is the mainstay of your portfolio. The investment company just announced its? year-end distributions. The? long-term capital gain per share is ?$ 3.74 and the dividend per share is ?$ 2.47 Assuming the NAV increased from ?$ 32.87 to ?$ 35.48..

Address issues with the partnering companies : Assume the role of a senior-level manager in a Middle Eastern multinational company.- How do you keep your company from suffering much damage due to poor publicity? Thoroughly explain.

User Account

All Pages