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3 years ago

What is the dividend on an 8 percent preferred stock that currently sells for $45 and has a face value of $50 per share?

Business

1 answer:

topjm [15]3 years ago

7 0

The dividend of a stock would always depend on the face value of the share. Therefore the dividend is calculated by:

Dividend = (Face Value) * (Interest rate)

Dividend = $50 per share * 0.08

Dividend = $4 per share (ANSWER)

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