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    shayray1's Avatar
    shayray1 Posts: 1, Reputation: 1
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    #1

    Feb 6, 2011, 07:35 AM
    how do i calculate preferred dividends from preferred stock
    preferred $6 stock, $100 par (no change during year)= $200,000. What are the dividends
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Feb 6, 2011, 10:38 AM

    Par value times the percentage rate times number of shares outstanding.

    Therefore $200,000 divided by the Par value of $100 = number of shares outstanding.

    $100 par value * $6 = dividends per share

    Dividends per share * number of shares outstanding = total dividends to be paid.
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