A Company Issues 500,000 Shares of Preferred Stock for $30

Multiple Choice

A company issues 500,000 shares of preferred stock for $30 a share. The stock has a fixed annual dividend rate of 5% and a par value of $9 per share. The current price of the preferred stock is $32 a share. Preferred stockholders can anticipate receiving a per share annual dividend of:

A) 5% of the $9 par value per share.
B) 5% of the $30 issue price per share.
C) 5% of the $32 current market price per share.
D) 5% of the $21 additional paid-in capital per share.