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View Full Version : How to calculate the preferred dividend under certain circumstance


Gwen Chan
Dec 11, 2008, 11:17 PM
I would like to know how to calculate the preferred dividend if the question has several information :

common shares authorized par value $ 10 100,000
Average common shares outstanding 50,000
8% $100 par preferred atock authorized 80,000
Preferred stock outstanding 30,000

Is it 8% X $100 X 80,000 ? Or 8% X $100 X 30,000 ?

pready
Dec 12, 2008, 03:04 PM
it is the Percentage Rate * stated or Par value of the share* Number of shares Issued and outstanding.