Hi, I need assistance with Managerial Finance assignment please...

If a $1,000 par value convertible bond has a conversion ratio of 1 bond to 70 shares, the bond conversion price is $14.29.

True

False

Kuhns Corp. has 230,000 shares of preferred stock outstanding that is cumulative. The dividend is $7.20 per share and has not been paid for 3 years. If Kuhns earned $2.00 million this year, what could be the maximum payment to the preferred stockholders on a per share basis?(Round your answer to 2 decimal places.)

$7.60 per share

$10.95 per share

$10.20 per share

$8.70 per share

Buggy Whip Manufacturing Company is issuing preferred stock yielding 19%. Selten Corporation is considering buying the stock. Buggy's tax rate is 0% due to continuing heavy tax losses, and Selten's tax rate is 38%. What is the after-tax preferred yield for Selten?(Round your answer to 2 decimal places.)

17.98

16.83

18.93

15.33

Lucas, Inc. earned $19 million last year and retained $9 million. Lucas has 12 million shares outstanding, and the current price of Lucas shares is $35 per share. What is the payout ratio?(Round your answer to the nearest whole percent.)

53%

48%

58%

56%

CBA Inc has 260,000 shares outstanding with a $8.0 par value. The shares were issued for $18.0. The stock is currently selling for $30.0. CBA has $6,000,000 in retained earnings and has declared a stock dividend that will increase the number of outstanding shares by 9.00%. What will be the capital in excess of par account after the stock dividend?

$3,732,800

$9,114,800

$2,600,000

$3,114,800

When a firm enters Stage IV of its life cycle,

dividend payout ratios are likely to rise to a moderate level of 20-30% of earnings.

the firm has reached maturity.

the organization must retain earnings in preparation for cycling back into Stage I of the life cycle.

stock splits are common.

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A convertible bond is currently selling for $883. It is convertible into 18 shares of common which presently sell for $46 per share. The conversion premium is

$46

$55

$64

$18

A $1,000 par value bond with a conversion price of $36 has a conversion ratio of(Round your answer to 2 decimal places.)

38.11 shares

15.28 shares

17.55 shares

27.78 shares

Mirrlees Corp. has 10,000 5% bonds convertible into 45 shares per $1,000 bond. Mirrlees has 560,000 outstanding shares. Mirrlees has a tax rate of 40%. The average Aa bond yield at time of issue was 12%. Compute basic earnings per share if after-tax earnings are $710,000.(Round your answer to 2 decimal places.)

$0.13

$-0.29

$1.27

$0.91

Sen Corporation warrants carry the right to buy 6 shares of Sen common stock at $10.00 per share. The common stock has a current market price of $14.50 per share. The intrinsic or minimum value of one Sen warrant is(Round your answer to 2 decimal places.)

$28.50

$22.00

$0

$27.00

The difference between convertible debt and non-convertible debt is

convertible debt is not affected by interest rate changes, while non-convertible debt is.

convertible debt is not considered a liability since it can be exchanged for stock, while non-convertible debt is.

convertible debt can be converted into stock at any point in time, while non-convertible debt cannot.

convertible debt can come with downside protection, while non-convertible debt does not.

A convertible bond is currently selling for $788. It is convertible into 14 shares of common which presently sell for $52 per share. The conversion premium is

$66

$52

$14

$60

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