Alto Company issued 7% preferred stock with a $100 par value. This means that O preferred shareholders have a guaranteed dividend. the amount of the potential dividend is $7 per year per preferred share. preferred shareholders are entitled to 7% of the annual income. O the market price per share will approximate $100 per share. O only 7% of the total paid-in capital can be preferred stock. 2019 vera
Answer
The correct Answer = Option #2 The amount of potential dividend
is $ 7 per year per preferred stock [$100 x 7%]
>preferred stockholder will receive
$ 7 per share held each year provided there are sufficient net
income to distribute those dividend.
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