Find a company that has within the past two years issued preferred stock (2017-2019).Explain the terms...

Find a company that has within the past two years issued preferred stock (2017-2019).Explain the terms of the contract and the reasoning behind issuing the preferred stock. Finally, give some indication of the performance of the preferred stock to an investor and/or project the long term returns.

Expert Solution

Gladstone Investment Corporation (NASDAQ: GAIN) issued 2,600,000 shares of 6.375% Series E Cumulative Term Preferred Stock due 2025 (the “Series E Term Preferred Shares”) at a public offering price of $25.00 per share on 08/15/2018.

Company	Gladstone Investment Corporation	Ticker	NASDAQ: GAIN
Issuance Date	08/15/2018	Maturity Date	08/31/2025
Shares issued	26,00,000	Coupon	6.38%
Face Value	$25.00	Qualified	No
Cumulative	Yes	S&P Rating	NR
Quarterly Dividend Amount	0.133	Annual Dividend	1.594

The Company intended to use the net proceeds from this offering, plus borrowings under its credit facility, as necessary, to redeem all outstanding shares of its 6.75% Series B Cumulative Term Preferred Stock and its 6.50% Series C Cumulative Term Preferred Stock and for other general corporate purpose

Gladstone Investment Series E Cumulative Term Preferred Stock (NASDAQ:GAINL) declared $0.1328125/share monthly dividend, in line with previous.

Forward yield 6.4%

Payable Jan. 31; for shareholders of record Jan. 18; ex-div Jan. 17.

Payable Feb. 28; for shareholders of record Feb. 20; ex-div Feb. 19.

Payable Mar. 29; for shareholders of record Mar. 20; ex-div Mar. 19.

jeff jeffy answered 3 months ago

Carmen Company is a corporation that has issued both preferred and common stock. As of January...

Carmen Company is a corporation that has issued both preferred and common stock. As of January 1, it had 50,000 shares of 2.75%, $100 par, preferred stock outstanding and 250,000 shares of $10 par common stock outstanding. a. On January 31, the board of directors issues a requirement to purchase 5,000 shares of its common stock at market price. The shares are purchased at a market price of $22 per share. Journalize the purchase utilizing the cost concept. Jan. 31...

Taylor Systems has just issued preferred stock. The stock has a 9 % annual dividend and...

Taylor Systems has just issued preferred stock. The stock has a 9 % annual dividend and a $ 75 par value and was sold at $72.00 per share. In addition, flotation costs of $6.00 per share were paid. Calculate the cost of the preferred stock.

Sheridan Energy Company has issued perpetual preferred stock with a stated (par) value of $100 and...

Sheridan Energy Company has issued perpetual preferred stock with a stated (par) value of $100 and a dividend of 7.0 percent. If the required rate of return is 10.00 percent, what is the stock's current market price? (Round answer to 2 decimal places, e.g. 15.25.) Current market price

A company issued preferred shares two years ago, paying a $3.29 dividend, which offered investors an...

A company issued preferred shares two years ago, paying a $3.29 dividend, which offered investors an original yield of 8%. Currently, the required return on companies with preferred shares of comparable risk yield 11%. Given this information, what should these shares be trading for today?

During 2018, Company A has the following transactions involving its common and preferred stock: Issued 20,000...

During 2018, Company A has the following transactions involving its common and preferred stock: Issued 20,000 shares of $8 par common stock for $26 a share; brings total shares outstanding to 50,000 shares Issued 6,000 shares of $100 par, 6%, cumulative preferred stock for $150 per share When market value of the common stock reached $15 a share, Company A declared a 3-for-1 stock split, reducing the par value to $188 per share The following is required: 1. Prepare a...

Coronado Industries has issued 2,300 shares of common stock and 460 shares of preferred stock for...

Coronado Industries has issued 2,300 shares of common stock and 460 shares of preferred stock for a lump sum of $87,000 cash. Give the entry for the issuance assuming the par value of the common stock was $5 and the fair value $30, and the par value of the preferred stock was $40 and the fair value $50. (Each valuation is on a per share basis and there are ready markets for each stock. Give the entry for the issuance...

Green Forest Banking has issued bonds, common stock, and preferred stock. The YTM for the bonds...

Green Forest Banking has issued bonds, common stock, and preferred stock. The YTM for the bonds is 10.9 percent and the expected annual return for the common stock is 17.3 percent. Which of the following assertions about the expected annual return for the preferred stock issued by Green Forest Banking is most likely to be true? A) The expected annual return for the preferred stock is 17.3 percent B) The expected annual return for the preferred stock is 10.9 percent...

3. April, Inc. issued 4000 shares of preferred stock for $240,000. The stock has a par...

3. April, Inc. issued 4000 shares of preferred stock for $240,000. The stock has a par value of $60 per share. The journal entry to record this transaction would ________. A) credit Cash $240,000, debit Preferred Stock—$60 Par Value $4000, and debit Paid-In Capital in Excess of Par—Preferred $236,000 B) debit Cash $240,000, credit Preferred Stock—$60 Par Value $4000, and credit Paid-In Capital in Excess of Par—Preferred $236,000 C) credit Cash $240,000 and debit Preferred Stock—$60 Par Value $240,000 D)...

Parker Corporation has issued 1,700 shares of common stock and 340 shares of preferred stock for...

Parker Corporation has issued 1,700 shares of common stock and 340 shares of preferred stock for a lump sum of $62,000 cash. Give the entry for the issuance assuming the par value of the common stock was $5 and the fair value $30, and the par value of the preferred stock was $40 and the fair value $50. (Each valuation is on a per share basis and there are ready markets for each stock.) (Credit account titles are automatically indented...

Several years ago, Rolen Riders issued preferred stock with a stated annual dividend of 12% of...

Several years ago, Rolen Riders issued preferred stock with a stated annual dividend of 12% of its $100 par value. Preferred stock of this type currently yields 9%. Assume dividends are paid annually. What is the estimated value of Rolen's preferred stock? Round your answer to the nearest cent. $_______________ Suppose interest rate levels have risen to the point where the preferred stock now yields 12%. What would be the new estimated value of Rolen's preferred stock? Round your answer...

Question