A small manufacturer has not had the funds to pay its stockholders for 2 years. Nowat the end of the second year, the company earned a profit of $1,200,000. Theboard of directors determined the company would pay 75% of the profit to itsshareholders. Find the dividend per share if the company has 10,000 cumulativepreferred shares of $100 par value at 10% and 400,000 shares of common stock.Label each.

The return that an entity offers to its equity holders is regarded as dividends. The equity holders…

Answered: A small manufacturer has not had the…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The Board of Directors of Challenger, Inc. has authorized 10,000 shares of stock at a price of $200/share. Currently, there are 7,000 shares issued with 6,000 outstanding. If Challenger, Inc wanted to raise more capital, how much capital could it raise by selling shares? $600,000 $800,000 $1,400,000 $2,000,000
"Andrews Company has $80,000 available to pay dividends. It has 2,000 shares of 10%, $100 par, preferred stock and 30,000 shares of $10 par common stock outstanding. The preferred stock is selling for $125 per share, and the common stock is selling for $20 per share." I need help with Question C please
Enterprise Storage Company has 420,000 shares of cumulative preferred stock outstanding, which has a stated dividend of $5.75. 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 proposes to offer new common stock to the preferred stockholders to wipe out the deficit. The common stock will pay the following dividends over the next four years: D1 D2 D3 D4 $1.05 1.15 1.25 1.35 The company anticipates earnings per share after four years will be $4.07 with a P/E ratio of 14. The common stock will be valued as the present value of future dividends plus the present value of the future stock price after four years. The discount rate used by the investment banker is 11…
An investor bought 100 shares of a manufacturing company at $102 per share, with an initial margin of 60%. The investor was charged 9% margin interest annually. One year later, the investor sold the stock for $140 per share. The investor's holding period return is closest to:(a)54 % . (b)56 % . (c)123%. (d)223 %.
Enterprise Storage Company has 450,000 shares of cumulative preferred stock outstanding, which has a stated dividend of $8.75. 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 proposes to offer new common stock to the preferred stockholders to wipe out the deficit. The common stock will pay the following dividends over the next four years: D1 $ 1.20 D2 1.30 D3 1.40 D4 1.50 The company anticipates earnings per share after four years will be $4.10 with a P/E ratio of 11.The common stock will be valued as the present value of future dividends plus the present value of the future stock price…
Cleveland Corporation has 100,000 shares of common stock outstanding. The company's net income is $1,400,000 and its P/E is 16. What is the company's stock price? Round it to a whole dollar.
Company S has 4,000 shares outstanding and a total stockholders’ equity of $200,000. It is about to issue 6,000 new shares to the prospective parent company. The shares will be sold for a total of $650,000. Will there be an excess of cost over book value? If so, how will it likely be accounted for?

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