Here are the stockholders\' Equity accounts and balances from the records of Bre

Question

Here are the stockholders' Equity accounts and balances from the records of Brett Corporation:

Preferred Stock, cumulative, 30,000 shares authorized $12 par                   $300,000

Common Stock, 400,000 shares authorized, 360,000 shares issued            720,000

Treasury Stock (10,000 shares, common stock)                                            180,000

Use this information to answer the following question: If the preferred stock is entitled to $24,000 in dividends each year, if declared, what is the stated dividend rate per share?

Explanation / Answer

Stated dividend rate per share = 24000/30000= $0.8 or 8%

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