Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

I only need help with requirement 4, please! Ozark Distributing Company is primarily engaged in the wholesale distribution of consumer products in the Ozark Mountain

image text in transcribedimage text in transcribedI only need help with requirement 4, please!

Ozark Distributing Company is primarily engaged in the wholesale distribution of consumer products in the Ozark Mountain regions The following disclosure note appeared in the company's 2018 annual report: Note 5. Convertible Preferred Stock (in part) The Company has the following Convertible Preferred Stock outstanding as of September 2018 Date of issuance: Optionally redeemable beginning Par value (gross proceeds) Number of shares: Liquidation preference per share: Conversion price per share: Number of common shares in which to be converted: Dividend rate: June 17, 2015 June 18, 2017 $7,500,000 250, 000 30 38.78 193,398 6.885% The Preferred Stock is convertible at any time by the holders into a number of shares of Ozark's common stock equal to the number of preferred shares being converted times a fraction equal to $30 divided by the conversion price. The conversion prices for the Preferred Stock are subject to customary adjustments in the event of stock splits, stock dividends and certain other distributions on the Common Stock. Cumulative dividends for the Preferred Stock are payable in arrears, when, as and if declared by the Board of Directors, on March 31, June 30, September 30, and December 31 of each year The Preferred Stock is optionally redeemable by the Company beginning on various dates, as listed above, at redemption prices equal to 120% of the liquidation preference. The redemption prices decrease 2% annually thereafter until the redemption price equals the liquidation preference after which date it remains the liquidation preference Required . What amount of dividends is paid annually to a preferred shareholder owning 150 shares of the Series A preferred stock? 2. If dividends are not paid in 2019 and 2020, but are paid in 2021, what amount of dividends will the shareholder receive? 3. If the investor chooses to convert the shares in 2019, how many shares of common stock will the investor receive for his/her 150 shares? 4. If Ozark chooses to redeem the shares on June 18, 2019, what amount will the investor be paid for his/her 150 shares? Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Required 4 If Ozark chooses to redeem the shares on June 18, 2019, what amount will the investor be paid for his/her 150 shares? (Round "Per Share Amounts" to 2 decimal places except percentage values.) Per Share Total 150 Amounts shares Liquidation preference Redemption Percentage (%) Redemption price, June 18, 2019 Required 3 Required 4

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions