As of 1/1/20, XYZ Corporation has accumulated E&P of $1,000,000 and has a deficit in current E&P for 2020 of ($600,000). On 9/30/20, XYZ distributes $700,000 cash to its sole shareholder, Peter, who has a basis in his stock of $100,000. How much dividend income does Peter recognize as result of this distribution? Plz do fast in 30 to 60 minutes plz do fast

Enterprise Storage Company has 420,000 shares of cumulative preferred stock outstanding, which has a stated dividend of $5.75. It is six years in arrears in its dividend payments. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. How much in total dollars is the company behind in its payments? (Do not round intermediate calculations. Input your answer in dollars, not millions (e.g., $1,234,000).) Dividend in arrears b. The firm proposes to offer new common stock to the preferred stockholders to wipe out the deficit. The common stock will pay the following dividends over the next four years: D1 D2 D3 D4 $1.05 1.15 1.25 1.35 The company anticipates earnings per share after four years will be $4.07 with a P/E ratio of 14. The common stock will be valued as the present value of future dividends plus the present value of the future stock price after four years. The discount rate used by the investment banker is 11…

Carlton Containers has a dividend policy whereby the firm pays a constant annual dividend of $1.95 per share of common stock. The firm has 10,000 shares of stock outstanding. The company ???    - must always show a current liability of $19,500 ($1.95 x 1,000) for dividends payable.   - is obligated to pay $1.95 per share each year in perpetuity.    - must still declare each dividend before it becomes an actual company liability.   - will be declared in default if it does not pay at least $1.95 per share per year on a timely basis.   - has a liability that must be paid at a later date should the company miss paying an annual dividend payment.

Ashely Corporation has 80 million outstanding equity shares and the following projected financial information for the next four years. The tax rate is 25%. Ashely’s cost of capital is 13%. Assume Ashely is fully financed with equity.     Year 1 2 3 4 Earnings Forecast ($millions)           1 Sales   474.28 520.31 571.88 728.99 2 Cost of Goods Sold 269.53 308.19 335.68 490.25 3 Selling, General & Admin. 102.05 108.25 105.24 135.76 4 Depreciation   12.00 15.00 12.50 15.50 5 Net Income   68.03 66.65 88.85 65.61 Capital Requirements ($millions)           6 Capital Expenditures 8.80 11.50 10.60 12.50 7 Increase in Net Working Capital 6.80 7.20 8.25 9.15   Ashely’s CFO wants to use P/E ratio to value the stock’s terminal value in year 4. The CFO forecasts the industry P/E ratio in year 4 is 20. Based on the forecasted P/E ratio, what is the…