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    qasimali34's Avatar
    qasimali34 Posts: 2, Reputation: 1
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    #1

    Dec 1, 2008, 04:25 AM
    How to calculate the dividend amount on preferred stock?
    How to calculate the dividend amount on preferred stock?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Dec 10, 2008, 06:18 PM

    For preferred stock there is a Percentage. Preferred stock pays a fixed rate of dividends by the percentage of the Par value of the stock.

    For example a 2% 50 Par value Preferred stock will pay 50*2% = $1 divdend per share.
    pritty1979's Avatar
    pritty1979 Posts: 3, Reputation: 1
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    #3

    Sep 19, 2010, 12:56 PM
    What is there is no percentage? I'm stuck on exercises that you need to calculate the dividends but all it gives you is:
    Preferred $10 stock, $40 par (no change during the year) $800,000
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #4

    Sep 19, 2010, 10:37 PM

    We appreciate if you start your own thread for your question instead of tagging onto other people's.

    Since it has a dollar value already, just use that. The % means a % of the par, and if you figure that %, it'll give you the dollar value per share. You simply already have that dollar value ($10) rather than having to figure it out. But otherwise it's the same thing.
    smoothice's Avatar
    smoothice Posts: 1, Reputation: 1
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    #5

    Jun 15, 2012, 04:36 PM
    You own 750 shares of stock X and you read in the newspaper that the dividend for the stock is 3.88. What did you earn in dividends?
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #6

    Jun 15, 2012, 06:25 PM
    Quote Originally Posted by smoothice View Post
    You own 750 shares of stock X and you read in the newspaper that the dividend for the stock is 3.88. What did you earn in dividends?
    Is that 3.88% or $3.88 per share?
    gshal's Avatar
    gshal Posts: 2, Reputation: 1
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    #7

    Jun 19, 2012, 06:03 PM
    how to find the answer, if my friend give me 2% is =$10.309, so how many $$ altogether
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #8

    Jun 19, 2012, 06:17 PM
    Divide by 2 multiply by 100
    gshal's Avatar
    gshal Posts: 2, Reputation: 1
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    #9

    Jun 19, 2012, 06:22 PM
    Thanks Paraclete.. :)
    stinson2's Avatar
    stinson2 Posts: 2, Reputation: 1
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    #10

    Dec 11, 2012, 04:15 PM
    The years are given for three years of $9000 $14,000 $21,000

    I need to determine the total dividends for each class of stock preferred of stock outstanding cummulative 86,000 shares of 5%,$3 par and common stock of 135,000 shares of $1.55 par share. I need help to figure this out
    stinson2's Avatar
    stinson2 Posts: 2, Reputation: 1
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    #11

    Dec 11, 2012, 04:17 PM
    The years are given for three years of $9000 $14,000 $21,000

    I need to determine the total dividends for each class of stock preferred of stock outstanding cummulative 86,000 shares of 5%,$3 par and common stock of 135,000 shares of $1.55 par share. I need help to figure this out
    samik93's Avatar
    samik93 Posts: 2, Reputation: 1
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    #12

    Oct 14, 2013, 11:11 AM
    If the market price is not given on Preferred stock how can I find it?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #13

    Oct 20, 2013, 09:17 PM
    You do not need market price in calculating dividends. Simply take your par value times the percentage rate times your shares issued and outstanding equals your dividends on preferred stock.

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