Ozark Distributing Company is primarily engaged in the wholesale distribution of consumer products in the Ozark Mountain regions. The following disclosure note appeared in the company’s 2018 annual report: Note 5. Convertible Preferred Stock (in part): The Company has the following Convertible Preferred Stock outstanding as of September 2018: Date of issuance: June 17, 2015 Optionally redeemable beginning: June 18, 2017 Par value (gross proceeds): $ 2,500,000 Number of shares: 100,000 Liquidation preference per share: $ 25.00 Conversion price per share: $ 30.31 Number of common shares in which to be converted: 82,481 Dividend rate: 6.785 % The Preferred Stock is convertible at any time by the holders into a number of shares of Ozark’s common stock equal to the number of preferred shares being converted times a fraction equal to $25.00 divided by the conversion price. The conversion prices for the Preferred Stock are subject to customary adjustments in the event of stock splits, stock dividends and certain other distributions on the Common Stock. Cumulative dividends for the Preferred Stock are payable in arrears, when, as and if declared by the Board of Directors, on March 31, June 30, September 30, and December 31 of each year. The Preferred Stock is optionally redeemable by the Company beginning on various dates, as listed above, at redemption prices equal to 112% of the liquidation preference. The redemption prices decrease 1% annually thereafter until the redemption price equals the liquidation preference after which date it remains the liquidation preference. Required: 1. What amount of dividends is paid annually to a preferred shareholder owning 100 shares of the Series A preferred stock? 2. If dividends are not paid in 2019 and 2020, but are paid in 2021, what amount of dividends will the shareholder receive? 3. If the investor chooses to convert the shares in 2019, how many shares of common stock will the investor receive for his/her 100 shares? 4. If Ozark chooses to redeem the shares on June 18, 2019, what amount will the investor be paid for his/her 100 shares?

3. Which of the following statements is (are) correct?

(x) If a country were to increase its saving rate, then in the long run it would also increase its level of capital and its level of income

(y) Country A and country B are the same except country A currently has a lower level of capital. Assuming diminishing returns, if both countries increase their capital by 100 units and other factors that determine output are unchanged, then output in country A increases by more than in country B.

(z) All else equal, if there are diminishing returns, then if a country raised its capital by 100 units last year and by 100 units this year, the increase in output was greater for this year than last year.

A. (x), (y) and (z)

B. (x) and (y) only

C. (x) and (z) only

D. (y) and (z) only

E. (z) only

4. Consider three imaginary countries. In Midland, saving amounts to $7,000 and consumption amounts to $15,000; in Lowland, saving amounts to $6,000 and consumption amounts to $24,000; and in Heartland, saving amounts to $9,000 and consumption amounts to $23,000. The saving rate is

A. higher in Heartland than in Lowland, and it is the same in Lowland and Midland.

B. higher in Midland than in Lowland, and it is the same in Midland and Heartland.

C. higher in Midland than in Heartland, and it is higher in Heartland than in Lowland.

D. higher in Lowland than in Heartland, and it is higher in Midland than in Lowland.

E. higher in Heartland than in Midland, and it is higher in Midland than in Lowland.

5. In the country of Golden, the price of copper increased from $3.00 per pound to $3.18 per pound during a time when the overall price level (CPI) in Golden increased from 130 to 140. During this period, the real price of copper in Golden _________.

A. decreased.

B. increased.

C. stayed the same.

D. might have increased, decreased or stayed the same; more information is needed to be sure.

1. Jebron Lames is considering the purchase of a car, which will cost him $125,000.   He will borrow the entire purchase price and make monthly payments over the next five years. The first payment is due next month and the interest rate is 3.10%. He will owe $____ on the car immediately following the 23^rd payment.

You are a car sales person. A first time car buyer comes into where you work and tells you upfront that they are looking for a basic model car. Since you are paid on commission, the more the price of the car you sell means the more you will get. What would you do?

Given the Demand function, Q = 360 – 2P.

• First, interpret the constants in the function.
• Derive the elasticity when the price is US$ 50 and interpret the result.
• Next, derive the Inverse Demand Function and interpret the constants in the function.
• Take the 1^st and 2^nd derivative of the Inverse Demand function and interpret your results.

Developing a new product has taken longer and required more work than was
expected at the time the decision to develop was first made. Should the firm raise
the price of the product above what it originally planned to sell it for because the
costs are higher than before?

Please justify with relevant economics concepts.

consider a 20 year ,10% annual pay bond with a full price of ksh.112 and can be called n five years at ksh. 102 and can also be called at par in 7 years

required.
1.Yield to maturity
2.Yield to first call
3.Yield to second call

XYZ just paid a dividend of $ 2.65 on its shares. The dividend growth rate is expected to be constant 4% per annum forever. Investors demand a return of 16% for the first three years, a return of 14% for the next three years and a return of 11% thereafter. What is the current price of this financial instrument?

You are financing a new car with a three-year loan at 10.5% annual nominal interest, compounded monthly. The price of the car is $14,500. Your down payment is $1,500. What are your monthly payments at 10.5%? (Assume your payments start one month after the purchase, or at the end of the first period.)