Salmon, Incorporated issues 500,000 shares of preferred stock for $60 a share. The stock has a fixed annual dividend rate of 5%

Question

maks197457 [2]

3 years ago

6

Salmon, Incorporated issues 500,000 shares of preferred stock for $60 a share. The stock has a fixed annual dividend rate of 5%

and a par value of $18 per share. The current price of the preferred stock is $64 a share. If sufficient dividends are declared, preferred stockholders can anticipate receiving annual dividends of: _________

Business

1 answer:

azamat · Answer 1 · 2022-08-29T11:25:04+03:00

If sufficient dividends are declared, preferred stockholders can anticipate receiving annual dividends of: $0.90 per share.

Using this formula

Annual dividends= Par value × Fixed Annual dividend rate

Where:

Par value= $18 per share

Fixed Annual dividend rate= 5% or 0.05

Let plug in the formula

Annual dividends= $18 per share × 0.05

Annual dividends= $0.90 per share

Inconclusion if sufficient dividends are declared, preferred stockholders can anticipate receiving annual dividends of: $0.90 per share.

Learn more about annual dividend here:brainly.com/question/25557702