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View Full Version : How to calculate preferred stock dividend?


mizs_shila
Jan 30, 2012, 10:34 PM
The company presently has rm3oooooo 8% debt & 400000 shares of common stock outstanding. The company requires rm5000000 for business expansion & is considering the proposal of issue 50% 12% preferred stock with a par value of rm100 per share.. What is the expected preferred stock divident?

rehmanvohra
Feb 5, 2012, 09:42 PM
Preferred stock dividend is 5,000,000 x 50% x 12% = 300,000