. Calculate the annual cash dividends required to be paid for each of the following preferred stock issuances:

(a.) $2.40 cumulative preferred, no par value; 300,000 shares authorized, 235,000 shares issued, 14,000 shares held as treasury stock.

(b.) 10%, $50 par value preferred; 100,000 shares authorized, 62,000 shares issued and outstanding.

(c.) 13% cumulative preferred, $40 stated value, $42 liquidating value; 70,000 shares authorized, 46,000 shares issued, 44,000 shares outstanding.

3. Assume that you own 1,700 shares of $10 par value common stock and the company has a 2-for-1 stock split when the market price per share is $52.

Required:

(a.) How many shares of common stock will you own after the stock split?

(b.) What will probably happen to the market price per share of the stock?

(c.) What will probably happen to the par value per share of the stock?