A Cumulative Preferred Stock with a $100 Par Value and 6

question 123

Multiple Choice

A cumulative preferred stock with a $100 par value and 6% dividend is currently trading on the market at $110 per share.What is the amount of the dividend the holder is entitled to receive each year?

• A) $66
• B) 6% of the company's net profit
• C) $6% of the total book value of preferred shares
• D) $6
• E) $0

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