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 for the past three years from the following data taken from the firm’s financial statements:   Year   20X1   20X2   20X3 Operating income $ 19,000,000 $ 17,000,000 $ 18,000,000 Interest   6,100,000   3,600,000   10,800,000 Taxes   4,600,000   4,600,000   4,900,000 Preferred dividends   1,100,000   1,500,000   1,000,000 Common dividends   2,100,000   2,900,000   —   Round your answers to two decimal places. 20X1:  20X2:  20X3:  What does your analysis indicate about the firm’s capacity to pay preferred stock dividends? Times preferred dividend earned has  each year, which indicates the firm's capacity to pay the dividend has  .

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task 2

Domestic

Question 4 The following information is taken from Tanaka Bhd for the year ended 31 December 2020. Preference dividend declared and fully paid in 2020: RM100,000 Ordinary dividend declared and fully paid in 2020: RM3,960,000 Preference shares marketable price per unit at 31 December 2020: RM4.60 Ordinary share marketable price per unit at 31 December 2020: RM9.00 2. From the industry average, identify and comment on Tanaka Bhd’s profitability and short-term liquidity.

QUESTION THREE A. The Manix Company was recently formed to manufacture a new product. It has the following capital structure in market value terms:                         K   Debentures 6,000,000   Preferred stock 2,000,000 Common stock (320,000 shares) 8,000,000 Total.              16,000,000 The company has a marginal tax rate of 40 percent. A study of publicly held companies in this line of business suggests that the required return on equity is about 17 percent (The CAPM approach was used to determine the required rate of return). The Manix Company’s debt is currently yielding 13 percent, and its preferred stock is yielding 12 percent. Required Calculate the firm’s present weighted average cost of capital

Question content area top Part 1 Assume Gillette Corporation will pay an annual dividend of $ 0.66 one year from now. Analysts expect this dividend to grow at 11.2 % per year thereafter until the fifth year. Thereafter, growth will level off at 1.6 % per year. According to the DDM, what is the value of a share of Gillette stock if the firm's equity cost of capital is 8.3 % ? Question content area bottom Part 1 The value of Gillette's stock is $ enter your response here. (Round to the nearest cent.

Question 10 (2 points) A firm has 1 million shares outstanding. After-tax earnings have been constant at $5 per share. The firm retains 40% of earnings and pays out the rest in dividend. The shareholder's required rate of return is 15%. Calculate the current share price. $50 $20 $30 $10 $40

D4

QUESTION 2 Atlas Home Supply has paid a constant annual dividend of $2.40 a share for the past 15 years. Yesterday, the firm announced the dividend will increase next year by 10 percent and will stay at that level through Year, 3.The company will be liquidated but it will take 3 years for the process to complete. Therefore, the liquidating dividend of $26.928 per share will be paid in Year 6. The required return on this stock is 12 percent. What is the current value per share? (Enter the answer in $ accurate to two decimal places. Just enter a number - do not include a $ symbol or any other punctuation.)