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A company issues 100,000 shares of preferred stock for $40 a share. The stock has fixed annual dividend rate of 5% and a par value
A company issues 100,000 shares of preferred stock for $40 a share. The stock has fixed annual dividend rate of 5% and a par value of $3 per share. Preferred stockholders can anticipate receiving a dividend of:
A.) | $5,000 each year. |
B.) | $15,000 each year. |
C.) | 5% of net income each year. |
D.) | $3 per share. |
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