Description of this paper

Authorized and available shares. Aspin Corporation`s charter authorizes issuance

Description

solution


Question

Authorized and available shares. Aspin Corporation`s charter authorizes issuance of 2,000,000 shares of common stock. Currently, 1,400,000 shares are outstanding and 100,000 shares are being held as treasury stock. The firm wishes to raise $48,000,000 for a plant expansion. Discussions with its investment bankers indicate that the sale of new common stock will net the firm $60 per share.;What is the maximum number of new shares of common stock the firm can sell without receiving further authorization from shareholders?;Based on the data-given and your finding in part a, will the firm be able to raise the needed funds without receiving further authorization?;What must be the firm do to obtain authorization to issue more than the number of shares found in part a?;2.Preferred dividends. Slater Lamp Manufacturing has an outstanding issue of preferred stock with an $ 80 par value and an 11 % annual dividend.;a. What is the annual dollar dividend? If it is paid quarterly, how much will be paid each quarter?;b. If the preferred stock is noncumulative and the board of directors has passed the preferred dividend for the last 3 years, how much must be paid to preferred stockholders before dividends are paid to common stockholders?;c. If the preferred stock is cumulative and the board of directors has passed the preferred dividend for the last 3 years, how much must be paid to preferred stockholders before dividends are paid to common stockholders?;3. Preferred dividends. In each case in the following table, how many dollars of preferred dividends per share must be paid to preferred stockholders before common stock dividends are paid?

 

Paper#25079 | Written in 18-Jul-2015

Price : $37
SiteLock