Somento Forest Inc. has 10000 shares of 6% $100 par value cumulative preferred stock and 100000 shares of $1 par value common stock outstanding at December 31 2017. What is the annual dividend on the preferred stock?

Question

Quizplus · Accepted Answer

To find the annual dividend on the preferred stock, we need to multiply the number of preferred shares by the dividend rate and the par value per share:

10000 shares x 6% x $100 par value = $60,000 in total

Therefore, the answer is B, $60000 in total.