If a company has 2,500 shares authorized and 1,500 have been issued, the annual dividends on $20 par 5% preferred stock is $1,500.

Name: If a company has 2,500 shares authorized and 1,500 have been issued, the annual dividends on $20 par 5% preferred stock is $1,500.
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Quizplus · Accepted Answer

The annual dividend for preferred stock is calculated as the par value multiplied by the dividend rate and the number of shares issued. Here, $20 par value * 5% * 1,500 shares = $1,500.

If a Company Has 2,500 Shares Authorized and 1,500 Have