To Calculate Dividends on Par-Value Preferred Stock

question 43

Multiple Choice

To calculate dividends on par-value preferred stock:

• A)multiply the number of shares times rate.
• B)multiply rate times par-value.
• C)multiply number of shares outstanding times rate times par-value.
• D)None of these answers are correct.

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Definitions:

Days' Sales in Inventory

A financial metric calculating the average number of days a company holds inventory before selling it, reflecting inventory management efficiency.

Dividend Yield

The financial ratio that shows how much a company pays out in dividends each year relative to its stock price.

Total Asset Turnover

A financial ratio that measures a company’s ability to generate sales from its assets by comparing net sales with average total assets.

Inventory Turnover

A ratio showing how many times a company has sold and replaced inventory over a certain period of time, indicating the efficiency of inventory management.