need everything answered in yellow and orange asap

accidently posted pics twice so ignore the duplicates

Preferred Stock Dividends in Arrears Part 3 Refer to Problem 17-18 (Create 282, page 572) Note: Calculate dividends in arrears separately and only enter your answer for each section a) Dividends in arrears after five years b) Dividends in arrears if firm earned after taxes $2,800,000 in the sixth year at the end of the sixth year C) Profit available to pay a dividend to Common stockholders. Note: Enter whole number Borrowing Funds to Purchase Preferred Part 4 Refer to Problem 17-21 (Create 283, page 573) a) After tax income from the additional preferred stock Preferred Dividend Taxable Taxable Stock $ Rate Dividend Portion Income 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 Note: Enter rate as a decimal Tax Rate X Note: Enter rate as a decimal Tax Dividend Tax Amount Received Amount Taxable Income . b) Borrowing Costs Loan Amount Stated Interest Interest Charged "1-tax rate" Aftertax borrow rate X Additional calculation: Net Gain or (Loss) on purchase with borrowed funds Enter a loss as a negative c) Based on the result of the "additional calculation", should the treasurer proceed? Enter "Y" for yes and "N" for no part 3 3 Dark Lone-Term Financing ears a. 18. National Health Corporation (NHC) has a cumulative preferred stock issue out- standing, which has a stated annual dividend of $8 per share. The company has been losing money and has not paid preferred dividends for the last five years. There are 350,000 shares of preferred stock outstanding and 650,000 shares of common stock. How much is the company behind in preferred dividends? b. If NHC earns $13,500,000 in the coming year after taxes but before divi- dends, and this is all paid out to the preferred stockholders, how much will the company be in arrears (behind in payments)? Keep in mind that the coming year would represent the sixth year. How much, if any, would be available in common stock dividends in the coming year if $13,500,000 is earned as explained in part b? 19. Robbins Petroleum Company is four years to TVID Urvumurauve prererred stock dividends. There are 690,000 preferred shares outstanding, and the annual dividend is $6.50 per share. The Vice-President of Finance sees no real hope of paying the dividends in arrears. She is devising a plan to compensate the pre- ferred stockholders for 80 percent of the dividends in arrears. C. Chapter 17 . Common and Preferred Stock Financing part 4 med in part a? Row ing fun peel How many shares of common stock must be issued 21. The treasurer of Kelly Bottling Company (a corporation) currently has $150,000 invested in preferred stock yielding 8 percent. He appreciates the tax advantages of preferred stock and is considering buying $150,000 more with borrowed funds. The cost of the borrowed funds is 13 percent. He suggests this (LOS) proposal to his board of directors. They are somewhat concerned by the fact that in part beliminate the defin the nearest whole number. Slov the treasurer will be paying 5 percent more for funds than the company will be earning on the investment. Kelly Bottling is in a 35 percent tax bracket, with dividends taxed at 20 percent. a. Compute the amount of the aftertax income from the additional preferred stock if it is purchased. b. Compute the aftertax borrowing cost to purchase the additional preferred stock. That is, multiply the interest cost times (1 - 1). Should the treasurer proceed with his proposal? d. If interest rates and dividend yields in the market go up six months after a c. decision to purchase is made, what impact will this have on the outcome? bae two classes of referred stock: floating rate preferred stock and straight (normal) preferred stOCK. BOLI preferre (L017 Barnes Art utach nays an annual dividend yield she issuance Preferred Stock Dividends in Arrears Part 3 Refer to Problem 17-18 (Create 282, page 572) Note: Calculate dividends in arrears separately and only enter your answer for each section a) Dividends in arrears after five years b) Dividends in arrears if firm earned after taxes $2,800,000 in the sixth year at the end of the sixth year C) Profit available to pay a dividend to Common stockholders. Note: Enter whole number Borrowing Funds to Purchase Preferred Part 4 Refer to Problem 17-21 (Create 283, page 573) a) After tax income from the additional preferred stock Preferred Dividend Taxable Taxable Stock $ Rate Dividend Portion Income 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 Note: Enter rate as a decimal Tax Rate X Note: Enter rate as a decimal Tax Dividend Tax Amount Received Amount Taxable Income . b) Borrowing Costs Loan Amount Stated Interest Interest Charged "1-tax rate" Aftertax borrow rate X Additional calculation: Net Gain or (Loss) on purchase with borrowed funds Enter a loss as a negative c) Based on the result of the "additional calculation", should the treasurer proceed? Enter "Y" for yes and "N" for no part 3 3 Dark Lone-Term Financing ears a. 18. National Health Corporation (NHC) has a cumulative preferred stock issue out- standing, which has a stated annual dividend of $8 per share. The company has been losing money and has not paid preferred dividends for the last five years. There are 350,000 shares of preferred stock outstanding and 650,000 shares of common stock. How much is the company behind in preferred dividends? b. If NHC earns $13,500,000 in the coming year after taxes but before divi- dends, and this is all paid out to the preferred stockholders, how much will the company be in arrears (behind in payments)? Keep in mind that the coming year would represent the sixth year. How much, if any, would be available in common stock dividends in the coming year if $13,500,000 is earned as explained in part b? 19. Robbins Petroleum Company is four years to TVID Urvumurauve prererred stock dividends. There are 690,000 preferred shares outstanding, and the annual dividend is $6.50 per share. The Vice-President of Finance sees no real hope of paying the dividends in arrears. She is devising a plan to compensate the pre- ferred stockholders for 80 percent of the dividends in arrears. C. Chapter 17 . Common and Preferred Stock Financing part 4 med in part a? Row ing fun peel How many shares of common stock must be issued 21. The treasurer of Kelly Bottling Company (a corporation) currently has $150,000 invested in preferred stock yielding 8 percent. He appreciates the tax advantages of preferred stock and is considering buying $150,000 more with borrowed funds. The cost of the borrowed funds is 13 percent. He suggests this (LOS) proposal to his board of directors. They are somewhat concerned by the fact that in part beliminate the defin the nearest whole number. Slov the treasurer will be paying 5 percent more for funds than the company will be earning on the investment. Kelly Bottling is in a 35 percent tax bracket, with dividends taxed at 20 percent. a. Compute the amount of the aftertax income from the additional preferred stock if it is purchased. b. Compute the aftertax borrowing cost to purchase the additional preferred stock. That is, multiply the interest cost times (1 - 1). Should the treasurer proceed with his proposal? d. If interest rates and dividend yields in the market go up six months after a c. decision to purchase is made, what impact will this have on the outcome? bae two classes of referred stock: floating rate preferred stock and straight (normal) preferred stOCK. BOLI preferre (L017 Barnes Art utach nays an annual dividend yield she issuance