Preferred stock may have its dividend rate listed as a percentage of par value per share or as a flat stated amount.

Name: Preferred stock may have its dividend rate listed as a percentage of par value per share or as a flat stated amount.
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Question

Quizplus · Accepted Answer

This is true. The dividend rate of preferred stock can be expressed as a percentage of par value per share or as a flat stated amount. The choice depends on the structure and terms of the specific preferred stock.

Preferred Stock May Have Its Dividend Rate Listed as a Percentage