Robbins Petroleum Company is four years in arrears on cumulative preferred stock dividends. There are 880,000 preferred shares outstanding, and the annual dividend is $9,50 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 preferred stockholders for 90 percent of the dividends in artears, a. How much should the compensation be? (Do not round intermediate calculations. Input your answer in dollars, not millions (e.g. $1,234,000).) Compensation 5 30,000,000 b. Robbins will compensate the preferred stockholders in the form of bonds paying 12 percent interest in a market environment in which the going rate of interest is 16 percent for similar bonds. The bonds will have a 15 year maturity. Using the bond valuation Table 162. Indicate the market value of a $1.000 par value bond (Round your answer to the nearest whole number.) Bond value c. Based on market value, how many bonds must be issued to provide the compensation determined in part a? (Do not round intermediate calculations and round your answer to the nearest whole number.) Bonds issued The Omega Corporation has some excess cash it would like to invest in marketable securities for a long-term hold. Its Vice-President of Finance is considering three investments: (a) Treasury bonds at a 6 percent yield to corporate bonds at a 13 percent yield, or (9 preferred stock at an 10 percent yleld. Omega Corporation is in a 35 percent tax bracket and the tax rate on dividends is 20 percent 0-1. Compute the aftertax yields for the three Investment options. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.) Treasury bonds b Corporate bonds C Protocred stock Aftertax yields 3.90 8.45 0-2. Which one of the three investments should she select based on the aftertax yields Preferred Stock O Treasury bonds Corporate bond