Preferred stock with a $100 par value and a 5 percent dividend is currently trading on the market at $90 per share. What is the amount of the dividend the holder is entitled to receive each year on each share?
$90
5 percent of $90
5 percent of total corporate profits divided by the number of shares outstanding
$5
None of these

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The Answer of Preferred stock with a $100 par value and a 5 percent dividend is currently trading on the market at $90 per share. What is the amount of the dividend the holder is entitled to receive each year on each share?
$90
5 percent of $90
5 percent of total corporate profits divided by the number of shares outstanding
$5
None of these

Preferred Stock with a $100 Par Value and a 5