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FIN 310 Chapter 6 Open-Ended Assignment Note: Please put your answers only in the section below the Bold Red sentence at the end of the
FIN 310 | ||||||
Chapter 6 Open-Ended Assignment | ||||||
Note: Please put your answers only in the section below the Bold Red sentence at the end of the Required section below. | ||||||
A company has an outstanding issue of $50 par value preferred stock. It recently declared a $10 per share dividend on its common stock. | ||||||
Required: | ||||||
Indicate how much the company will pay in annual per-share preferred dividends in each of the following case: | ||||||
A. The preferred stock is a $15 non-participating preferred stock. | ||||||
B. The preferred stock is a 7% non-participating preferred stock. | ||||||
C. The preferred stock is a $9 partially participating preferred, requiring that the preferred dividend increase by $0.60 for every dollar the common dividend exceeds $9. | ||||||
D. The preferred stock is a $9 fully participating preferred, requiring that the preferred dividend increase to equal the common dividend if the latter exceeds $9. | ||||||
Your answers to this open-ended assignment should be placed in the space below this line. | ||||||
A | ||||||
B | ||||||
C | ||||||
D | ||||||
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