DEN, Inc. has 1,000, $6, cumulative preferred shares issued at $100, and 50,000 common shares issued at $1, at December 31, 2010. What is the annual dividend on the preferred shares?

Question

Quizplus · Accepted Answer

The annual dividend on the preferred shares is calculated by multiplying the dividend rate by the par value of each share. In this case, it's $6 (dividend rate) * 1,000 (number of shares) = $6,000 in total.

DEN, Inc Has 1,000, $6, Cumulative Preferred Shares Issued at $100