Macromicro Inc. initially issued its preferred stock at a par value of $1,000 with a 9 percent dividend rate. What is the quarterly dividend installment for purchasers of the stock?

Name: Macromicro Inc. initially issued its preferred stock at a par value of $1,000 with a 9 percent dividend rate. What is the quarterly dividend installment for purchasers of the stock?
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Question

Quizplus · Accepted Answer

The annual dividend is 9% of $1,000, which is $90. Dividing this by 4 gives a quarterly dividend of $22.50.