You are an investor in Blue Sky Ltd. You hold:

• 500 ordinary shares
• 400 preference shares
• 400 fixed-rate bonds
• 500 floating-rate bonds

The following information relates to your holdings:

(a) There are 1 million ordinary shares on issue, which carry full voting rights. Statutory voting is used at the AGM.

(b) There are 1 million preference shares on issue. The preference dividend is equal to 9% of the nominal face value of $100. The company made a loss last year and no dividends were paid (although all dividends were paid in all previous years). The preference shares are non-cumulative.

(c) The fixed-rate bonds have a face value of $200, pay semi-annual coupon payments at a coupon rate of 8% p.a., and will mature today.

(d) The floating-rate bonds have a face value of $300 and pay semi-annual coupon payments based on BBSW plus a margin of 2.3%. A coupon payment is due today. The BBSW took on the following values on the following dates:

• Today: 4.5%
• 6 months ago: 4.7%
• 12 months ago: 4.4%

The AGM is today. If the Board of Directors declares that a total of $23 million will be paid in dividends this year, how much will you receive in ordinary share dividends?

The AGM is today. If the Board of Directors declares that a total of $23 million will be paid in dividends this year, how much will you receive in preference share dividends?

What will be your final cash flow, due today, from your fixed-rate bonds?

What will be your total coupon payment, due today, on the floating-rate bonds?