Interpreting Disclosure on Convertible Preferred Securities Gladiator Investment Corporation includes the following in its 10-K for the fiscal year ended March 31, 2019. Mandatorily Redeemable Senior Securities ($ thousands) Amount Class and Year Outstanding 7.125% Series A Cumulative Term Preferred Stock March 31, 2019 $- March 31, 2018 6.75% Series B Cumulative Term Preferred Stock March 31, 2019 March 31, 2018 41,400 6.50% Series C Cumulative Term Preferred Stock due 2022 March 31, 2019 March 31, 2018 6.25% Series D Cumulative Term Preferred Stock due 2023 March 31, 2019 57,500 March 31, 2018 57,500 6.375% Series E Cumulative Term Preferred Stock due 2025 March 31, 2019 74,750 March 31, 2018 40,250 Required a. Explain what is meant by "mandatorily redeemable preferred stock." This means that the company must buy the stock from shareholders at some pre-specified price and date. b. Assume that the company issued new stock on the first day of the fiscal year. What total amount of preferred stock dividends ($ thousands) must Gladiator Investment pay during the year ended March 31, 2018? Note: Round your answer to two decimal places (for example, enter 67.49 for 67.48555). $ 9 X c. What total amount of preferred stock dividends ($ thousands) must Gladiator Investment pay during the year ended March 31, 2019? Note: Round your answer to two decimal places (for example, enter 67.49 for 67.48555). $ 8.36 X d. During the fiscal year ended March 31, 2018, the company issued Series E preferred stock and used the proceeds to redeem all of the Series B and Series C stock at face value. Use the financial statement effects template to record these transactions. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. ($ in thousands) Transaction Balance Sheet Cash Income Statement Revenues + Noncash Assets Liabilities + Contrib. Capital + Expenses = Net Earned Capital Asset Income Jan. 10 74.75 x 0 = 0 0 0 0 0 N/A Cash N/A N/A N/A N/A M 74.75 x Series E Preferred Stock (41.4) * Series B Preferred Stock (40.25) Series C Preferred Stock Interpreting Disclosure on Convertible Preferred Securities Gladiator Investment Corporation includes the following in its 10-K for the fiscal year ended March 31, 2019. Mandatorily Redeemable Senior Securities ($ thousands) Amount Class and Year Outstanding 7.125% Series A Cumulative Term Preferred Stock March 31, 2019 $- March 31, 2018 6.75% Series B Cumulative Term Preferred Stock March 31, 2019 March 31, 2018 41,400 6.50% Series C Cumulative Term Preferred Stock due 2022 March 31, 2019 March 31, 2018 6.25% Series D Cumulative Term Preferred Stock due 2023 March 31, 2019 57,500 March 31, 2018 57,500 6.375% Series E Cumulative Term Preferred Stock due 2025 March 31, 2019 74,750 March 31, 2018 40,250 Required a. Explain what is meant by "mandatorily redeemable preferred stock." This means that the company must buy the stock from shareholders at some pre-specified price and date. b. Assume that the company issued new stock on the first day of the fiscal year. What total amount of preferred stock dividends ($ thousands) must Gladiator Investment pay during the year ended March 31, 2018? Note: Round your answer to two decimal places (for example, enter 67.49 for 67.48555). $ 9 X c. What total amount of preferred stock dividends ($ thousands) must Gladiator Investment pay during the year ended March 31, 2019? Note: Round your answer to two decimal places (for example, enter 67.49 for 67.48555). $ 8.36 X d. During the fiscal year ended March 31, 2018, the company issued Series E preferred stock and used the proceeds to redeem all of the Series B and Series C stock at face value. Use the financial statement effects template to record these transactions. Note: For each account category, indicate the appropriate account name. Enter "N/A" for any account category that is not used for a given transaction. Note: Indicate a decrease in an account category by including a negative sign with the amount. ($ in thousands) Transaction Balance Sheet Cash Income Statement Revenues + Noncash Assets Liabilities + Contrib. Capital + Expenses = Net Earned Capital Asset Income Jan. 10 74.75 x 0 = 0 0 0 0 0 N/A Cash N/A N/A N/A N/A M 74.75 x Series E Preferred Stock (41.4) * Series B Preferred Stock (40.25) Series C Preferred Stock