Quizzes > Chapter 12 Assignment Business Organization.aralegals, 7th Edition AA Q access http://apps.americanbar.org /dch/com- mittee.cfm?com=CL270000. Discussion Questions Fact Scenario. MagnaTech Inc. is a corporation with three classes of shares: Common A, Common B, and Preferred A, which has cumulative dividends of $.50 per share per year. Use the MBCA to answer these questions. 1. May the corporation declare a cash dividend of $2.00 per share for the Common A shareholders and a share dividend of 1 share for every 100 shares outstanding for shareholders of Common B stock? Back to page 1,548 Page 1,545 2 pages left in this chapter MAY tv N 4F. - SPRING 2029 - SECTION# 11899 Quizzes > Chapter 12 Assignment Business Organization.aralegals, 7th Edition AA Q W 2. The corporation is struggling but manages to pay its monthly bills, salaries, and expenses. May it declare a cash dividend of $1.00 per share for Com- mon B stockholders? 3. Assume that the corporation has defaulted three times last year in payment to its lenders. May the corporation pay a cash dividend to its Common A shareholders? 4. Assume the facts in Question 3. Three of the five directors voted in favor of the dividend at the board meeting at which the dividend was declared. Two directors voted against it. Do any individuals have any liability? Discuss. 5. Nate is a stockholder who owns 500 shares of Common A stock. The board of directors declared a Back to page 1,548 Page 1,546 1 page left in this chapterter F. - SPRING 2023 - SECTION# 11899 Quizzes > Chapter 12 Assignment Business Organization..aralegals, 7th Edition AA Q W. cash dividend to Common A shareholders and set the record date as June 1 and the payment date as June 30. On June 4, Nate sold his shares to Sarah. Who will receive the dividend? Why? O 6. The corporation has significant funds in its bank accounts, which it is planning to use to pur- cha chase several patents critical to its business. a. May Nate force the corporation to declare a dividend? b. Is there any risk to the corporation in "stockpiling" its money for the proposed patent acquisition? 7. The corporation's stock is trading at $140 per share, which is quite a bit higher than is typical. Thus, trading in the corporation's stock has leveled Back to page 1,548 Page 1,547 Last page in this chapter MAY tv S 4llearn.lacca.edu xter F. - SPRING 2023 - SECTION# 11899 Quizzes > Chapter 12 Assignment Business Organization..aralegals, 7th Edition AA Q W off a bit. What might the corporation do to encourage it 1 more active trading (without any outlay of cash by B q the corporation)? 8. After not paying a cash dividend last year, the board has declared a cash dividend of $.50 for each share of stock. Indicate what dividend will be cha received by each of the following stockholders: Alli- son, a holder of 50 shares of Common A stock; Brad, a holder of 200 shares of Common B stock; and Palmer, a holder of 500 shares of Preferred A stock. 9. Why does the federal government prefer cor- porations to declare and pay cash dividends? Net Worth Back to page 1,548 Page 1,548 2 pages left in this chapter MAY 2es > Chapter 12 Assignment Business Organization.aralegals, 7th Edition AA Q W Access the SEC's website for the following questions. 1. Locate the Investor Glossary. What is the defi- nition of a dividend? 2. Locate the SEC's "Fast Answers" in its "Edu- cation" section. Briefly, why do companies often split their stock? 3. Review Form 10-Q filed by Sun Bancorp, Inc. on August 8, 2014. What type of stock split did the company declare? State what effect this stock split had on the company's authorized common stock. 4. Locate Form 10-K filed on March 3, 2104, by Berkshire Hathaway Inc. When was the last Back to page 1,548 Page 1,549 1 page left in this chapterxlor F - SPRING 2023 . SECTION# 11899 Quizzes > Chapter 12 Assignment Business Organization.aralegals, 7th Edition AA Q R time that the company declared a cash dividend? 5. Locate Definitive Form 14A filed by Wal-Mart empt Stores Inc. on April 23, 2014. During 2014, O how much did the company pay to its share- holders as dividends? Describe Wal-Mart's cha 2014 repurchase of its shares. ers 6. Access the website of Hormel Foods. Access its Newsroom and review its press release dated May 19, 2014. What dividend was announced? How many consecutive quarterly dividends had Hormel Foods paid as of the payment date? Is Hormel an S&P Dividend Aristocrat? Back to page 1,548 Page 1,550 Last page in this chapter 7 tv S 4