Reference no: EM132538347

Question 1) ABC Corporation has 1.3 million common shares outstanding and total earnings of $2.4 million. The firm paid dividends totaling $550,000. The firm has no preferred stock.

a) What were the dividends per share paid by ABC?

b) What was ABC's dividend payout ratio?

Question 2) Price stock sells for $275 per share and you own 300 shares.

a) What is the current market value of your investment?

b) What is the new price per share, new amount of shares you will own, and the new market value of your investment if the firm declares a 3 for 1 stock split? If the firm declares a 15% stock dividend?

Question 3) Semi-Nowl Corporation has 1.1 million shares of 8% cumulative preferred stock outstanding with a stated value of $100 per share. If dividends are not paid for four years, what will be the amount of arrearage?

Question 4) Suppose you own 500 shares of FSU Inc. 12% convertible preferred stock. If each preferred share is convertible into 25 common shares, what is the conversion value of your 5,000 preferred shares if the common stock is trading at $30 per share?

Question 5) KLM Company issued $3 million of 9.75% $80 par preferred shares in 2001. Calculate the total amount of dividends paid on this issue per year and the annual amount of the dividends per share.