National Health Corporation (NHC) has a cumulative preferred stock issue outstanding, which has a stated annual dividend of $8 pershare. The company has been losing money and has not paid preferred dividends for the last five years. There are 450,000 shares ofpreferred stock outstanding and 750,000 shares of common stocka. How much is the company behind in preferred dividends?Note: Do not round intermediate calculations. Input your answer in dollars, not millions (e.g. $1,234,000).Answer is complete but not entirely correct.Preferred dividends in arrears$13,200,000b. If NHC earns $18,500,000 in the coming year 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)? Keep in mind that the coming year would represent the sixth year.Note: Do not round intermediate calculations. Input your answer in dollars, not millions (e.g. $1,234,000).Amount still in arrearsc. Can the firm pay any common stock dividends if the conditions in part b exist?YesNo

a. Pending Dividend (Preferred Dividends in Arrears):Multiply the annual dividend per share ($8) by…

Answered: National Health Corporation (NHC) has a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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…
The Crestar Company reported net income of $142,600 on 26,000 average outstanding common shares. Preferred dividends total $12,600. On the most recent trading day, the preferred shares sold at $56 and the common shares sold at $86. What is this company's current price-earnings ratio? (Do not round your intermediate calculations.) Multiple Choice 15.68 17.20 18.23 None of these answers are correct.
American Health Systems currently has 6,200,000 shares of stock outstanding and will report earnings of $22 million in the current year. The company is considering the issuance of 1,900,000 additional shares, which can only be issued at $16 per share. a. Assume that American Health Systems can earn 9 percent on the proceeds. Calculate earnings per share. Note: Do not round intermediate calculations and round your answer to 2 decimal places. Earnings per share b. Should the new issue be undertaken based on earnings per share? Yes O No
Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely.
Premier, Incorporated, has an odd dividend policy. The company has just paid a dividend of $7 per share and has announced that it will increase the dividend by $6 per share for each of the next five years, and then never pay another dividend. If you require a return of 14 percent on the company's stock, how much will you pay for a share today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current share price
Please help. I have tried four times (after 5 attempts, I lose all points) to determine the weighted average number of shares that Concord would use in calculating earnings per share for the fiscal year ended: May 31, 2020 May 31, 2021 The answers I have tried but were incorrect were as follows: 2020 $1,262,200 2021 $1,429,467 2020 $1,408,000 2021 $2,153,500 2020 $1,249,733 2021 $1,376,800 2020 $1,320,000 2021 $1,889,500
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…
A small manufacturer has not had the funds to pay its stockholders for 2 years. Now at the end of the second year, the company earned a profit of $1,200,000. The board of directors determined the company would pay 75% of the profit to its shareholders. Find the dividend per share if the company has 10,000 cumulative preferred shares of $100 par value at 10% and 400,000 shares of common stock. Label each.
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Myers Drugs Inc. has 2.5 million shares of stock outstanding. Earnings after taxes are $6 million. Myers also has warrants outstanding that allow the holder to buy 100,000 shares of stock at $10 per share. The stock is currently selling for $50 per share. a. Compute basic earnings per share. (Do not round intermediate calculations and round your answer to 2 decimal places.) Basic earnings per share b. Compute diluted earnings per share considering the possible impact of the warrants. Assume the cash proceeds are used to repuchase shares. (Do not round intermediate calculations and round your answer to 2 decimal places.) Use the following formula: Earnings after taxes Shares outstanding + Assumed net increase in shares from the warrants Diluted earnings per share
TFP Electric is a profitable utility company that has increased its dividend to common stockholders every year for 42 consecutive years. Which of the following is least likely to affect the market price of the company’s preferred stock by a significant amount? A. A decrease in long-term interest rates. B. An increase in long-term interest rates. C. The board of directors announces its intention to increase common stock dividends in the current year. D. Whether or not the preferred stock carries a conversion privilege
Mannix Corporation stock currently sells for $25 per share. The market requires a return of 10.4 percent on the firm's stock. If the company maintains a constant 3.2 percent growth rate in dividends, what was the most recent dividend per share paid on the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

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