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 2021 annual report: Note 5. Convertible Preferred Stock (in part): The Company has the following Convertible Preferred Stock outstanding as of September 2021: 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 $10 divided by the conversion price. The conversion prices for the Preferred Stock are subject to customary adjustments in the event bf 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 equat to 110% of the liquidation preference. The redemption prices decrease 1% annually thereafter until the redemption price equals the liquidation preference, after which date it remains the liquidation preference. Required: 1. What amount of dividends is paid annualiy to a preferred shareholder owning 400 shares of the Series A preferred stock? 2. If dividends are not paid in 2022 and 2023 , but are poid in 2024 , what amount of dividends will the shareholder receive? 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 $10 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 110% of the liquidation preference. The redemption prices decrease 1% annually thereafter until the redemption price equals the liquidation preference, after which date it remains the liquidation preference. Required: 1. What amount of dividends is paid annually to a preferred shareholder owning 400 shares of the Series A preferred stock? 2. If dividends are not paid in 2022 and 2023 , but are paid in 2024 , what amount of dividends will the shareholder receive? 3. If the investor chooses to convert the shares in 2022 , how many shares of common stock will the investor receive for his/her 400 shares? 4. If Ozark chooses to redeem the shares on June 18, 2022, what amount will the investor be paid for his/her 400 shares? Complete this question by entering your answers in the tabs below. What amount of dividends is paid annually to a preferred shareholder owning 400 shares of the Series A preferred stock? (Enter percentage value in 3 decimats.)
