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.
Latest posts by Answer Prime (see all)
- Which event in the reading to categorize odysseus as an archetype? - September 4, 2023
- This plant is Malva assurgentiflora, an endangered plant found in California. The flower of a Malva assurgentiflora. Based on the - September 4, 2023
- Protecting your Business should be easy in 2023 – Workplace Safety Recommendations - September 3, 2023