Your firm is considering the issuance of preferred shares for the first time. The average yield on preferred stock for firms in your industry is 6.50%
If you wish to issue preferred stock at par with a face value of $50.00 per share, approximately how large would you need to make your annual preferred dividend?
A) $3.00
B) $3.25
C) $6.50
D) There is not enough information to answer this question.
B
Explanation: B) Div = r * Price = .065 * $50.00 = $3.25.
You might also like to view...
A major disadvantageof the indirect method of reporting cash flows from operating activities is that thedifference between the net amount of cash flows from operating activities and net income is emphasized
a. True b. False Indicate whether the statement is true or false
Which of the following is not a reporting requirement on interim reports?
a. Seasonal information b. Major changes in income tax provision c. Full balance sheet d. Earnings per share e. Significant changes in financial position
A customer who is both loyal and profitable is referred to as a ________
A) barnacle B) stranger C) true believer D) laggard E) butterfly
A merchandiser's classified balance sheet reports merchandise inventory as a current asset.
Answer the following statement true (T) or false (F)