Ace Inc.has 10000 shares of 4% $100 par value cumulative preferred stock and 50000 shares of $1 par value common stock outstanding at December 31 2021.What is the annual dividend on the preferred stock?

Question

Quizplus · Accepted Answer

The annual dividend on the preferred stock is calculated as 4% of the $100 par value per share. Therefore, the total annual dividend is 4% of $100, which is $4 per share. With 10,000 shares, the total dividend is $4 x 10,000 = $40,000.

Ace IncHas 10000 Shares of 4% $100 Par Value Cumulative Preferred