Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Finance (https://www.askmehelpdesk.com/forumdisplay.php?f=125)
-   -   FINC question (https://www.askmehelpdesk.com/showthread.php?t=687510)

  • Jul 27, 2012, 06:25 AM
    koolbreezeN
    FINC question
    An 8 percent stock with a market price of $110 per share and a $100 par value pays a cash dividend of___.
    (Need help with steps on how to work this out)
  • Jul 27, 2012, 09:42 AM
    ArcSine
    "8% stock" sometimes means that the stock is currently paying a dividend that's 8% of the current market price, or

    Div = 110 x 0.08

    However, especially concerning preferred stock, that same phrase could mean that it pays a dividend equal to 8% of its par.

    You'll have to consult your textbook (or whatever background material you have, from which the question comes) to see which version of the terminology applies.

  • All times are GMT -7. The time now is 01:02 AM.