Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Finance & Accounting (https://www.askmehelpdesk.com/forumdisplay.php?f=411)
-   -   When a company purchases preferred stock at 2% par $100 what value is recorded? (https://www.askmehelpdesk.com/showthread.php?t=553519)

  • Feb 11, 2011, 07:57 AM
    Debs_830
    When a company purchases preferred stock at 2% par $100 what value is recorded?
    The reason I am asking is I am trying to find out the ROI, and I am not sure which value to use as my initial investment. I think it should be the preffered dividend, which is $2.00 per share, but confirmation on this guess would be nice :)

    Thank you!
  • Feb 13, 2011, 07:17 AM
    rehmanvohra
    ROI on preferred shares is to be calculated on its market value, if available.
  • Feb 14, 2011, 07:33 AM
    Debs_830
    Comment on rehmanvohra's post
    I was referring to the initial investment. The market value in question is $125 per share, but there are 2 numbers involved in finding the ROI, and the second number is either $2.00 or $100.00
  • Feb 16, 2011, 01:02 AM
    rehmanvohra
    It would have helped if you had posted the full question. My answer was based on information available.

  • All times are GMT -7. The time now is 05:23 AM.