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
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 companys 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:June17, 2015
Optionally redeemable beginning:June18, 2017
Par value (gross proceeds):$5,950,000
Number of shares: 170,000
Liquidation preference per share:$35
Conversion price per share:$44.46
Number of common shares in which to be converted: 133,828
Dividend rate: 6.765%
The Preferred Stock is convertible at any time by the holders into a number of shares of Ozarks common stock equal to the number of preferred shares being converted times a fraction equal to $35 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 1% annually thereafter until the redemption price equals the liquidation preference after which date it remains the liquidation preference.
Required 1 Required 2 Required 3 Required 4 Required 1 Required 2 Required 3 Required 4 What amount of dividends is paid annually to a preferred shareholder owning 200 shares of the Series A preferred stock? (Round "Dividend Rate" to 3 decimal places.) If the investor chooses to convert the shares in 2019, how many shares of common stock will the investor receive for his/her 200 shares? (Round your answers to 2 decimal places.) Number of convertible preferred shares owned Conversion Factor Number of common shares received Par Value Preferred Shares Dividend Rate(%) Total Annual Preferred Dividend Number of Preferred Shares Dividend per preferred share Shares owned Annual preferred dividend 200 shares Required 1 Required 2 Required 3 Required 4 Complete this question by entering your answers in the tabs below. If Ozark chooses to redeem the shares on June 18, 2019, what amount will the investor be paid for his/her 200 shares? (Round "Per Share Amounts" to 2 decimal places except percentage values.) Required 1 Required 2 Required 3 Required 4 Per Share Amounts Total 200 shares If dividends are not paid in 2019 and 2020, but are paid in 2021, what amount of dividends will the shareholder receive? (Round your answer to 3 decimal places.) Liquidation preference Redemption Percentage (%) Redemption price, June 18, 2019 Amount of dividends Required 3 Required 4 >Step by Step Solution
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