eris, Inc.has 1,000 shares of 6%, $10 par value, cumulative preferred stock and 50,000 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 6% of the par value per share. Therefore, 6% of $10 is $0.60 per share. With 1,000 shares, the total annual dividend is $0.60 * 1,000 = $600.

Eris, IncHas 1,000 Shares of 6%, $10 Par Value, Cumulative Preferred