Asked by Haley Yasui on Jun 08, 2024

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If the dividend amount of preferred stock, $50 par value, is quoted as 8%, then the dividends per share would be $4.

Dividend Amount

The sum of money paid by a corporation to its shareholders out of its profits or reserves.

Preferred Stock

Preferred stock is a type of stock that provides holders with priority over common stockholders regarding dividends and asset liquidation, typically without voting rights.

Par Value

Par value is the face value of a bond or the stock value stated in the corporate charter, below which shares cannot be issued.

  • Discern the policies and limitations that apply to cash and stock dividends.
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Hannah DockeryJun 08, 2024
Final Answer :
True
Explanation :
The dividend amount of preferred stock is quoted as a percentage of the par value, so if the par value is $50 and the dividend amount is 8%, then the dividend per share would be $50 x 0.08 = $4.