Ch 14: End-of-Chapter Problems Preferred Stock 4. Problem 14-04 Problem 14-04 You are considering purchasing the preferred stock of a firm but are concerned about its capacity to pay the dividend. To help allay that fear, you compute the times-preferred-dividend-earned ratio years from the following data taken from the fiem's financial statements for the past three 20X1 Operating Iincome $14,000,000 16,000,000 $13,00,00 Taxes Preferred dividends Common dividends 3,600,000 500,000 5,500,000 5,800,000 5,100,000 3,800,000 1,100,000 1,500,000 1,500,000 1,600,000 2,800,000 Round your answers to two decimal places. 20x1: 0x2: 20x3: What does your analysis indicate about the firm's capacity to pay preferred stock dividends? Times preferred dividend earned has B each year, which indicates the firm's capacity to pay the dividend 8 Ch 14: End-of-Chapter Problems Preferred Stock 4. Problem 14-04 Problem 14-04 to pay the dividend. To help allay that fear, you compute the times-greferred-dividend-earned ratio for the pest chree years from the following data taken from the firm's financial statements: 20x3 Operating Income $14,000,000 $16,00,000 $13,000,000 ,600,000 5,500,000 5,500,000 5,800,000 5100,000 3,800,000 100,000 1,500,000 1,500,000 600,0002,800,000 Taxes Preferred dividends Round your answers to two decimal places 2ox1 20x2: 20x3 What does your analysis indicate about the firm's capacity to pay prefermed stock dividends? Times preferred dividend earned each year, which indicates the frm's capacity to pay the dividend has S 9 3 4