Respuesta :
Preferred dividends refer to the cash dividends that an organization can pay out to its desired shareholders. In the given case, the owners will receive a cash dividend of $1.50 per share.
How preferred dividends are calculated?
Preferred dividends are issued based on the par price and dividend charge of the desired stock. While desired dividends are issued at a fixed charge primarily based totally on their par price, this can be detrimental in excessive inflation periods.
The missing information in the question is given below:
The owners of the preferred stock will receive a cash dividend of: Round your answer to the nearest cent.
A) $1.50 per share.
B) $70 per share.
C) $5.00 per share.
D) $30.00 per share.
The calculation of cash dividend is as follows:
5% preferred stock is calculated on $30 par value, which gives us a value of $1.50 per share of the preferred dividend.
Thus, In the given case, the owners will receive a cash dividend of $1.50 per share.
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