What are the annual dividends on $22 par preferred 5% stock, if 2,100 shares are authorized and 800 shares have been issued?

Question

Quizplus · Accepted Answer

The first step is to calculate the total amount of preferred stock that has been issued:

800 shares x $22 par value = $17,600

Next, we need to calculate the annual dividend payment for each share of preferred stock:

$22 par value x 5% dividend rate = $1.10 annual dividend payment per share

Finally, we can calculate the total annual dividend payment for all of the issued preferred stock:

$1.10 annual dividend payment per share x 800 shares issued = $880 annual dividend payment

Therefore, the answer is choice A) $880.

What Are the Annual Dividends on $22 Par Preferred 5