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olga nikolaevna [1]
2 years ago
15

Preferred Stock As of December 31, 2015, we had one class of preferred stock outstanding. We are authorized to issue approximate

ly 22 million shares of cumulative preferred stock, $1.00 par value per share.
Series A Convertible Preferred Stock: We have issued 300,000 shares of Series A convertible perpetual preferred stock with an aggregate liquidation preference of $300 and an initial fair value of $349. The convertible preferred stock pays quarterly cash dividends at a rate of 8% per year ($24 per year). Each share of convertible preferred stock is convertible at any time, at the option of the holder, into 89.8876 shares of common stock for a total of 26,966 thousand shares (reflecting an initial conversion price of approximately $11.125 per share of common stock), subject to customary anti-dilution adjustments.
Common Stock We have 1.75 billion authorized shares of common stock, $1.00 par value per share. At December 31, 2015, 102 million shares were reserved for issuance under our incentive compensation plans, 48 million shares were reserved for debt to equity exchanges and 27 million shares were reserved for conversion of the Series A convertible preferred stock.

Required
Question. At December 31, 2015, Xerox reports $349 million of 8% Series A Convertible Preferred stock. What is the dollar amount of dividends that Xerox must pay on this stock (assume a par value of $90 per share)?
Business
1 answer:
sergey [27]2 years ago
7 0

<u>Solution and Explanation:</u>

The dollar amount of dividends that Xerox must pay on this stock = $2,160,000

Working for the answer

It was given in the question that, company issued 300,000 shares of Series and the convertible preferred stock pays quarterly cash dividends at a rate of 8% per year

par value of $90 per share

SO amount of dividends that Xerox must pay on this stock

=300,000$ shares $* 90$ value face value $* 8 \%$

=300,000 * 90 * 8 \%

=2,160,000

amount of dividends that Xerox must pay on this stock =2,160,000

 

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Answer:

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Explanation:

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The depreciation cost can be determine using the expression below;

Depreciation cost=Purchase value-salvage value

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replacing;

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b). Cost of leasing agreement

<em>Step 2: Determine cost of leasing agreement</em>

Cost of leasing agreement=down payment+monthly payment+acquisition fee

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replacing;

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cost of leasing agreement=$12,290

The cost of lease agreement ($12,290) is greater than the total finance charge ($11,000)

One would want to finance this car rather than take this lease if the finance cost were $11,000 or less

8 0
3 years ago
Emporia Corporation is a lessee with a capital lease. The asset is recorded at $810,000 and has an economic life of 8 years. The
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Answer:

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