The annual per share dividend requirement of a 6%, $100 par value preferred stock that was issued for $105 is:
a. $7.50
b. $6.38
c. $6.00
d. $10.00

Question

The annual per share dividend requirement of a 6%, $100 par value preferred stock that was issued for $105 is:
a. $7.50
b. $6.38
c. $6.00
d. $10.00

Mollie · Accepted Answer

c. $6.00
The dividend is always paid on the face or par value of the preferred stock.
Thus, annual per share dividend= 100*6%
                                              = $6

The annual per share dividend requirement of a 6%, $100 par value preferred stock that was issued for $105 is:

a. $7.50

b. $6.38

c. $6.00

d. $10.00

Unlock this answer

Unlock this answer

The annual per share dividend requirement of a 6%, $100 par value preferred stock that was issued for $105 is: a. $7.50 b. $6.38 c. $6.00 d. $10.00

Unlock this answer

Unlock this answer

The annual per share dividend requirement of a 6%, $100 par value preferred stock that was issued for $105 is:

a. $7.50

b. $6.38

c. $6.00

d. $10.00