Question 29 (5 points) The following is information regarding the activities of Company A: Earnings before...

 

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Question 29 (5 points) The following is information regarding the activities of Company A: Earnings before interest and taxes: $540,000 Bond interest: $100,000 Tax rate: 35% 0.5 Dividend payout ratio: Preferred shares outstanding: 100,000 at $25 par value Payment to preferred shares 8 % of par value Common shares 500,000 a) Calculate the dividend paid to Company A preferred shares and common shares. b) If 20,000 of the preferred shares were cumulative preferred, what additional relevant information is provided from the calculations? Question 29 (5 points) The following is information regarding the activities of Company A: Earnings before interest and taxes: $540,000 Bond interest: $100,000 Tax rate: 35% 0.5 Dividend payout ratio: Preferred shares outstanding: 100,000 at $25 par value Payment to preferred shares 8 % of par value Common shares 500,000 a) Calculate the dividend paid to Company A preferred shares and common shares. b) If 20,000 of the preferred shares were cumulative preferred, what additional relevant information is provided from the calculations?

Answer rating: 100% (QA)

a Calculation of dividend paymet To Prefeseance Equity N... View the full answer