Qamar, Inc., did not pay dividends in 2009 or 2010, even though 50,000 shares of its 6.5%,

Question:

Qamar, Inc., did not pay dividends in 2009 or 2010, even though 50,000 shares of its 6.5%, $50 cumulative preferred stock were outstanding during those years. The company has 800,000 shares of $2.50 outstanding.

Required:
a. Calculate the annual per share obligation on the preferred stock.
b. Calculate the amount that would be received by an investor who has owned 400 shares of preferred stock and 6,000 shares of since 2008 if a $0.75 per share on the is paid at the end of 2011.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...