Start Inc.has 5,000 shares of 5%, $100 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 5% of the $100 par value, which equals $5 per share. With 5,000 shares outstanding, the total annual dividend is 5,000 shares * $5 per share = $25,000.

Start IncHas 5,000 Shares of 5%, $100 Par Value, Cumulative Preferred