Calculating cash dividends
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Calculate the cash dividends required to be paid for each of the following preferred stock issues:
a. The semiannual dividend on 6% cumulative preferred, $50 par value, 30,000 shares authorized, issued, and outstanding.
b. The annual dividend on $3.60 cumulative preferred, 400,000 shares authorized, 180,000 shares issued, 148,200 shares outstanding. Last year's dividend has not been paid
c. The quarterly dividend on 7.5% cumulative preferred, $100 stated value, $103 liquidating value, 120,000 shares authorized, 112,000 shares issued and outstanding. No dividends are in arrears.
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The dividend rates stated on preferred shares are always annual dividend rates. Thus, if the dividend is paid more frequently, it must be adjusted.
a. The semiannual dividend on 6% cumulative preferred, $50 par value, 30,000 shares authorized, issued, and outstanding.
Par value per share $50.00
Annual dividend rate per share .06
Annual dividend per share $ 3.00 ...
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