CAB Inc. has 1,000 shares of 6%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2014. What is the annual dividend on the preferred stock?
A) $60 per share.
B) $6,000 in total.
C) $600 in total.
D) $0.60 per share.

Question

Quizplus · Accepted Answer

The annual dividend on the preferred stock is calculated as 6% of the $100 par value per share, which is $6 per share. With 1,000 shares, the total annual dividend is $6,000.

CAB Inc Has 1,000 Shares of 6%, $100 Par Value, Cumulative