What is the dividend on an 8 percent preferred stock that currently sells for $45 and has a face value of $50 per share?

Question

asked Apr 23, 2018 226k views

1 Answer

Tidbeck · Answer 1 · 2018-04-29T15:37:09+0000

The dividend of a stock would always depend on the face value of the share. Therefore the dividend is calculated by:

Dividend = (Face Value) * (Interest rate)

Dividend = $50 per share * 0.08

Dividend = $4 per share (ANSWER)