Posted: May 5th, 2016

Which items are relevant to Ortiz’s decision about which of these productes it will launch?

Calculate the cash dividends required to be paid for each of the following preferred stock issues:

Required:
a. The semiannual dividend on 6% cumulative preferred, $50 par value, 30,000 shares authorized, issued, and outstanding.
b. The annual dividend on $3.60 cumulative preferred, 400,000 shares authorized,
180,000 shares issued, 148,200 shares outstanding. Last year’s dividend has not been paid.
c. The quarterly dividend on 7.5% cumulative preferred, $100 stated value,
$103 liquidating value, 120,000 shares authorized, 112,000 shares issued and outstanding. No dividends are in arrears.
Ortiz manufacturing is considering developing and marketing one of two new products. Which items are relevant to Ortiz’s decision about which of these productes it will launch?