Ozark Distributing Company is primarily engaged in the wholesale distribution of consumer products in the Ozark...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66560f7065edc_08066560f705d8cb.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66560f70be5ba_08066560f70b8518.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66560f7117b88_08166560f710e286.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66560f716a382_08166560f7160330.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/66560f71d120a_08166560f71c7caf.jpg)
Transcribed Image Text:
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: 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 conkerted: Dividend rate: June 17, 2018 June 18, 2020 $2,500,000 100,000 $ 25.00 $ 30.31 82,481 6.785% 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 $25.00 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 112% 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 100 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 100 shares? 4. If Ozark chooses to redeem the shares on June 18, 2022, what amount will the investor be paid for his/her 100 shares? 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: 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 conkerted: Dividend rate: June 17, 2018 June 18, 2020 $2,500,000 100,000 $ 25.00 $ 30.31 82,481 6.785% 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 $25.00 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 112% 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 100 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 100 shares? 4. If Ozark chooses to redeem the shares on June 18, 2022, what amount will the investor be paid for his/her 100 shares?
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
On November 2, 2006, Nicole Oliver established an interior decorating business, Devon Designs. During the remainder of the month, Nicole completed the following transactions related to the business:...
-
After the fraud was cleared, how much income did ZZZZ Best earn?
-
The stockholders equity section of Buzytown Industries balance sheet reports the following: 1997 1996 Preferred stock (9%, $100 par value) $ 200,000 $ 110,000 Common stock ($10 par value, 750,000...
-
Blake Corporation acquired 100 percent of Shaw Corporation's voting shares on January 1, 20X3, at underlying book value. At that date, the book values and fair values of Shaw's assets and liabilities...
-
Dallas Pierce wants to know what rate she is paying on her simple discount note. The maturity value was $8,920 with $80.50 interest for 64 days. What was her rate? (Use 360 days a year. Do not round...
-
Accrual income versus cash flow for a period. Thomas Book Sales, Inc., supplies textbooks to college and university bookstores. The books are shipped with a proviso that they must be paid for within...
-
X File Home A1 123 t 4 56 AutoSave 7 A 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Year 0 WN P > 2 3 . Hch 9 finance hw - Saved to this PC B 3 points total Consider the cashflows of the following 2...
-
MAT 152 Project 3: MLB Team Salaries The data set below is the total salary of each Major League Baseball (MLB) team salaries per team in 2016. Find the probabilities for normal distributions and...
-
deficit, surplusincreased, decreased$795, $1,975, $54,635, $35 6. Cash-flow statement Sam and Joan Wallingford have been married for two years. They have been trying to save but feel that there is...
-
Trudy bought the vacant lot adjacent to her house and planted a large garden there. The garden produces more vegetables than her family needs, and Trudy earns some extra cash by selling them at a...
-
Requirements Medical researchers once conducted experiments to determine whether Lisinopril is a drug that is effective in lowering systolic blood pressure of patients. Patients in a treatment group...
-
1. Balroop while looking for Gurjap walks 315m [N] toward the forest, then 133 m [28 S of E] through it, and finally finds him deep inside the forest after walking another 55 m [ 31 S of W]....
-
A Worldwide area structure would make the most sense in a multinational company that: Group of answer choices manufactures high-end sports cars, like Ferrari manufactures microscope slides to be used...
-
1 4 What is meant by the phrase a 9,9 manager?
-
1 6 Evaluate that theory in the light of the evidence acquired in review question 5 and other considerations.
-
1 5 Discuss with someone how he/she tries to influence people (or reflect on your own practice). Compare this evidence with one of the contingency theory approaches.
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App