s (Preferred dividend) A company has outstanding issue par value preferred stock

Question

s (Preferred dividend) A company has outstanding issue par value preferred stock. declared a $7.00 per share dividend on its common stock. How much will the company pay in annual per-share preferred dividend if the preferred is a $12.00 preferred stock"? "14% preferred stock"? $10.00 partially participating preferred, requiring that the preferred dividend increase by $0.25 for every dollar the common dividend exceeds $5.00? d S6.00 fully participating preferred, requiring that the preferred dividend increase to equal the com- mon dividend if the latter exceeds $6.00?

Explanation / Answer

Answer:

a. $12

b. 100*14% = $14

c. $10+ (7-5)*0.25 = $10.50

d. $6 + (7-6)*1 = $7

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