Calculate total amount of dividends in arrears, Financial Management

Assignment Help:

QTL Tech has an issue of preferred shares outstanding with a $50 stated value that pays a dividend of 7.5%. There are 325,000 shares outstanding. QTL has not paid preferred share dividends for 3.5 years. The company's CEO wishes to retire the preferred share issue by paying the preferred shareholders 50% of the dividends in arrears plus 10% of the stated value of the preferred.

a. What is the total amount of dividends in arrears? Provide the per share and total dollars amounts.

b. If the preferred shareholders accepted the CEO's offer, what would be the total payment QTL Tech would have to make to the preferred shareholders on a per share and total dollar basis?

c. QTL Tech common shares are trading for $1.22 on the market. If the CEO offered to convert each preferred share into 5 common shares, would this be a better deal for the preferred shareholders?


Related Discussions:- Calculate total amount of dividends in arrears

Define advantage and disadvantage of internal rate of return, What are the ...

What are the advantages and disadvantages of the internal rate of return method? The internal rate of return (IRR) method is a discounted cash flow method and a number expressed

Evaluate the use of market multiples, The annual report and accounts for As...

The annual report and accounts for Astra Zeneca plc and Epistem Holdings plc and other relevant financial information are available in the ‘TMA 02 Resources folder' in the Assessme

Commercial paper, Commercial Paper (CP) is a short-term unsecured pro...

Commercial Paper (CP) is a short-term unsecured promissory note issued in the open market. It also represents the obligation of the issuer. Normally, it is issued

Sales managers view on exchange risk, The sales manager considers that ther...

The sales manager considers that there will be substantial foreign exchange risk in trading with Werland. Payment is unpaid in Werland francs in three months time. The current ster

Corporate governance, CORPORATE GOVERNANCE Corporate governance can be ...

CORPORATE GOVERNANCE Corporate governance can be stated in different ways, for example: The Private Sector Corporate Governance Trust (PSCGT) defines that corporate governan

How does continuous compounding benefit an investor, How does continuous co...

How does continuous compounding benefit an investor? The effect of enhancing the number of compounding periods per year is to increase the future value of the investment.  The

Show market risk in systematic risks, Market risk as that portion of total ...

Market risk as that portion of total variability of return caused by the alternating Forces of bull and bear markets. When the security index moves upward haltingly for a signifi

Show the signs of overtrading, Q. Show the Signs of Overtrading? There ...

Q. Show the Signs of Overtrading? There are a number of usually recognised signs that a company may be overtrading. These are considered mutually with relevant financial data f

Types of rating - individual/borrower rating, Individual/Borrower Rating ...

Individual/Borrower Rating This includes rating a borrower to whom a loan/credit facility may be sanctioned.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd