Sampson Supply Inc. has outstanding borrowings that include preferred stock
One of these borrowings is (nonconvertible) preferred stock (cumulative) with a par value of $150 and an annual dividend rate of 4.50%. This preferred stock is currently selling for $175 per share. What is the yield or return on this nonconvertible preferred stock?
What will be an ideal response?
Answer: We first determine the annual dividend by multiplying the dividend rate against the par value: $150 × 0.045 = $6.75. Now, dividing this $6.75 annual dividend by the current price of $175.00, we get 0.03857, or about 3.86%.
You might also like to view...
A company paid $9,000 for a twelve-month insurance policy on February 1. The policy coverage began on February 1. On February 28, $750 of insurance expense must be recorded.
Answer the following statement true (T) or false (F)
A customer service representative who regularly tracks the type of customer complaints made through the company's 800 number is conducting experimental research
Indicate whether the statement is true or false
What did Blau (2002) find when he investigated the relationship between size and differentiation (meaning the number of organizational levels in hierarchy, number of departments, and number of job titles)?
a. The rate of differentiation decreased as size increased b. Differentiation increased as size increased c. Differentiation decreased as size increased d. Both a and b
Which of the following components of attitude includes an individual's feelings and emotions toward the object or idea?
A. Cognitive B. Behavioral C. Affective D. Perceptual E. Psychological